Great news for motorists?

2008-08-13 00:00

Consumers may be in for the best news in several months as expectations grow that the petrol price will drop by as much as R1 per litre next month.

More significantly, the wholesale price of diesel is expected to drop by as much as R1,60 a litre.

This will no doubt contribute to a more positive inflation outlook as businesses and consumers will then fork out less on transport in September.

According to the Central Energy Fund’s daily analysis, the over-recovery on petrol is about R1,10 per litre.

The daily diesel price over-recovery sits at about R1,65.

The anticipated change will bring the petrol price back below the R10 per litre mark.

However, oil prices need to remain at about $115 per barrel.

In addition, the rand will have to remain relatively strong.

Global oil prices remained on the back foot in recent weeks.

The rand has softened over the past week-and-a-half after staging a six-week rally that ended last Monday.

The Department of Minerals and Energy (DME) is expected to announce the fuel price changes at the end of this month.

The changes come into effect on September 3 — the first Wednesday of the month.

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