RUMOUR HAS IT…
Fuel price to drop
The AA says road users could be looking at a decline of between 60c and 64c a litre at month end
Rand resilience and a declining oil price have set the scene for a further fuel price drop, says the Automobile Association (AA). It says road users could be looking at a decline of between 60c and 64c a litre at month end, with diesel showing a 60c reduction and illuminating paraffin 57c. "The rand remained mostly stable against the US dollar in the first half of June, with strength in the currency contributing 3c a litre to the drop," the AA says. "The big move was from oil, which shrugged off Opec’s [Organisation of the Petroleum Exporting Countries’] production quotas to drop by about 8% since the start of the month." The association says the fuel price will come under pressure if the three major ratings agencies downgrade rand-denominated debt to junk status in future reviews of SA’s sovereign credit ratings. "That could trigger substantial capital outflow, almost certainly leading to rand weakness which will be heavily negative for the fuel price. Barring unexpected political ...
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