President Jacob Zuma’s cabinet reshuffle and the downgrade to junk status sent the rand dipping drastically in March. With Cape Town being the most congested city in South Africa, people are heavily relient on their vehicles and spend large portions of their salaries on fuel.
Motorists felt these harsh effects as petrol increased by 49 cents a litre during May.
According to the Automobile Association (AA), it is likely that pressure will be relieved during the month of June with fuel expected to drop by up to “26 cents a litre, with a 20 cent drop for both diesel and illuminating paraffin.”
The prime reason for this potential stability is due to the rand advancing against the US dollar. The dip in international oil pricing has also been a major contributing factor.
“With political uncertainty set to continue, our medium-term outlook for the fuel price is that lower international petroleum prices will be key to maintaining local fuel price stability if the rand weakens again” the AA added.