Petrol to drop 28c
THERE’S some respite ahead for motorists, with news that the price of petrol will decrease by 28c a litre from midnight on Tuesday.
The retail prices of all grades of petrol, the wholesale prices of both grades of diesel, illuminating paraffin, and the maximum retail prices of liquid petroleum gas would decrease, the Energy Department said yesterday.
The decrease comes after the international petroleum product prices decreased, on average, compared to the previous pricing review period.
The average rand/US dollar exchange rate decreased from just over R10 to R9.93
during the current fuel price review period. The strengthening of the rand against the dollar contributed to the decrease in the basic fuel price.
Dawie Roodt, Efficient Group’s director and chief economist, agreed that the decrease in the price of oil, combined with the rand’s recent performance against the dollar, were behind the drop.
“But the main reason is the oil price,” Roodt said.
Roodt warned that the respite would be shortlived, saying the petrol price was likely to increase next month.
He also predicted that the year could end with the cost of petrol being as high as its highest point this year.