Commenting on unaudited data released by the Central Energy Fund on Tuesday, the AA said it expects the price of petrol to go down by between 60 and 64 cents a litre, diesel by 60 cents and illuminated paraffin by 57 cents come Wednesday July 5th.
"The rand remained mostly stable against the US dollar in the first half of June, with strength in the currency contributing three cents a litre to the drop. The big move was from oil, which shrugged off OPEC’s production quotas to drop by around eight percent since the start of the month," the Association said in a statement.
It however warned that an increase could be on the cards if the Rand denominated debt is downgraded to junk status by the three major ratings agencies.
"That could trigger substantial capital outflow, almost certainly leading to Rand weakness which will be heavily negative for the fuel price. Barring unexpected political or economic shocks in the lead-up to the next ratings reviews, we expect fuel price movements to mainly depend on international petroleum prices," it said.
A short while ago the national currency was trading at R13.07 to the US Dollar with Brent Crude Oil at $47.18 a barrel.