Fuel: July price cut may be the last

2012-06-21 00:00

MOTORISTS are set to receive a further boon next month, following indications that a substantial petrol price cut of about 60 cents a litre is in the offing.

The price of petrol was cut by 55 cents a litre on June 6.

This followed steep increases earlier this year — 34 cents a litre in February, 28 cents a litre in March, 66 cents a litre in April and 28 cents a litre in May.

The chief economist at Investment Solutions, Chris Hart, told The Witness that global crude oil prices continued to decline on the back of jitters about weaker global economic growth prospects.

Hart added that the rand had strengthened against the U.S. dollar in recent weeks, from about R8,60 to about R8,20 to the U.S. dollar.

The wholesale price of diesel is also expected to decline next month, but by a lower margin than the anticipated drop in the petrol price.

“Oil prices have dropped on indications that the global economy is weakening. The weaker numbers are coming from China, Europe, the U.S. and China, so it is more widespread than we would have liked,” Hart said.

However, he does not expect major reductions in fuel prices for the rest of the year, although much depends on the performance of the global economy.

“I think we should take this as a good month and leave it at that. There is a huge range of possibilities when it comes to the outlook for fuel prices.”

According to latest fuel price expectations, there is an over-recovery on the petrol price, which means consumers are paying too much for a fuel product on a given day.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.