Diesel price could drop 57c in September

The expected drop in fuel prices has been welcomed by organised agriculture which is battling high input costs.

The Automobile Association (AA) said in a statement that petrol could drop by between 55c and 64c/litre, diesel by between 53c and 57c/l and illuminating paraffin 60c/l in September.

"The rand has weakened considerably against the US dollar since the last week of July. Fortunately for South African fuel users, international oil prices have continued to slip, meaning there is still a reasonable prospect of a drop in the fuel price at the end of the month," said the AA.

However, without the impact of the exchange rate’s recent poor showing, the predicted drops would have been in a range between 75c and 83c a litre, the AA said.

TAU SA general manager Benny van Zyl said any cut on input costs was welcome as it helped farmers maximise profits.