Fuel: big drop in price next week

2009-01-02 00:00

South Africans are in for a special gift this new year with the announcement yesterday that fuel prices will be slashed on Wednesday, sparking strong hopes that further disinflation and interest rate cuts are on the cards.

The price of petrol will drop by between R1,34 and R1,37 a litre.

This is the sixth consecutive drop in the price of petrol following a further softening of the oil price and a stronger rand during December.

This means that 95 unleaded petrol (at the coast) will now cost less than R5,80 a litre.

Announcing this, the Minerals and Energy Department said the wholesale price of diesel with a 0,05% sulphur content will drop by 167,95c, while that with a 0,005% sulphur content will decline by 165,95c per litre.

Consumer inflation has eased steadily in recent months and Dr Johan Botha, a senior economist with Standard Bank, believes the cost of transport and food will drop over the next two to three months.

“One can expect the fuel cuts to filter through relatively quickly into producer price inflation.”

He expects consumer inflation to soften to about eight percent during the first half of this year. Consumers can also expect several interest rate cuts in the coming months.

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
Comments have been closed for this article.

Inside News24

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


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.


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.