Petrol: Price drop expected in December

2012-11-17 00:00

MOTORISTS are in for some mild relief at the fuel pumps in December, just in time for their annual holiday trips.

Economists and transport industry analysts have predicted that the price of petrol will be decreased by as much as 40 cents a litre on the first Wednesday of December (December 5).

The wholesale price of diesel is expected to be cut by about 25 cents a litre.

Earlier this month, the petrol price was cut by 10 cents a litre, while the wholesale price of diesel was hiked by 9,2 and 10,2 cents a litre.

This followed hefty price hikes that have seen the price of petrol rise from about R10,31 a litre in January 2012 to about R11,85 a litre in October 2012 (95 unleaded, coastal).

Efficient Group chief economist Dawie Roodt told Weekend Witness that the anticipated cuts are as a result of lower global oil prices.

However, Roodt added that the recent weakening of the rand against the U.S. dollar had worked against motorists by making all imports, including oil, more expensive.

“The wild-card is the currency. The Rand has taken a knock…after the strikes. The [anticipated] cut would be much more had it not been for the Rand,” Roodt said.

The good news is that Roodt expects the Rand to strengthen and global oil prices to decline over the next few weeks.

The Department of Energy is expected to announce the changes on 30 November 2012.

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