More fuel price decreases expected
More fuel price decreases could be on the cards in coming months.
This was according to economist Mike Schussler, who said motorists could expect more fuel price decreases in future.
However, he warned that the price of fuel would once again spike when international demands for oil and diesel increased later in the year.
“Typically we’ve had a lot of decreases between February and August every year,” he said. “So, I suspect we will see one or two more decreases before we see increases again.”
He explained that while fuel prices remained fairly neutral in September, further rises were typically experienced in October, November and December due to greater oil consumption in the northern hemisphere during winter.
Schussler was commenting on the Department of Energy’s announcement that the price of all grades of petrol would drop by 15 cents a litre on 7 May.
Diesel would decrease by 29.78 cents a litre while illuminating paraffin and LP Gas would drop by 25 cents and four cents respectively.
The department said the price change was linked to a decrease in international crude oil prices and the rand’s appreciation against the United States dollar during the period under review.
A reduction of 9c in the slate fuel levy also contributed to the drop.
Schussler said although the drop in the fuel price was small, it would result in the average motorist saving about R20 a month.
