Motorists to breathe a sigh of relief

The third petrol drop in a row since August this year, will see motorists paying less than R10 per litre again.

According to the Department of Minerals and Energy, petrol is set to drop by 27 cents from R9.51 to R9.24 a litre.

The wholesale price of diesel with a 0.05% sulphur content would drop by 56 cents per litre, while diesel with a 0.005 percent sulphur content would drop by 55 cents.

The wholesale price of illuminating paraffin would drop by 65 cents a litre and the single maximum national retail price for illuminating paraffin by 87 cents a litre.

In August, the petrol price decreased by 27 cents a litre and in September it decreased by 69 cents.

Prior to the decrease, the petrol price had reached the highest peak ever, resulting in food and transport fare increases.

According to Economist Chris Hart, a contributing factor in the decrease is the strengthening rand.

“If the rand manages to hold on, it could mean good news for all of us,” he said.

Econometrix Economist Tony Twine told BuaNews that although there was instability in the global market, further petrol decreases are expected.

“We are likely to see another petrol price drop in the coming months,” said Twine, however, he warned that this could be short lived due to the volatility of the global markets.

Article published courtesy of BuaNews