PETROL and diesel will drop significantly in price, by 45c/l and 61c 1 respectively, on Wednesday, bringing some respite to battling consumers with high household debt levels.
The Department of Energy announced a drop in all grades of petrol and diesel, with both 95 and 93 octane coming down by 45c 1 while the price of diesel will with 0.05% sulphur will drop by 61c 1 and die¬sel with 0.005% sulphur will decrease by 60c/l.
According to the Department of Energy, the decrease in fuel this month came as the average Brent crude oil price decreased by 810.4/bbl from S98.10/bbl to S87.67/bbl.”
“This is the lowest level of Brent crude oil prices in nearly four years, pressured by ample supply, slackening demand, weak economic data from China and Europe, projections for another big boost in shale oil and reluctance by the Organisation of the Petroleum Exporting Countries (Opec) members to cut crude oil output.
“Since June oil prices fell by 25% raising suggestions that the Opec members would curb output. But some Opec members have not warmed to the idea of cutting produc-tion,” the department said.
Further, the substantial decreases in petroleum products prices were also driven by the weak economic signals from China and Europe and ample global refined petroleum products supply, and despite the depreciation in the rand-value against the US dollar, the local currency is still among the strongest performers in a basket of 20 emerging currencies.
The new fuel price adjustment for November will see motorists inland pay¬ing R13.16 for 95 octane, from R13.61 while 93 octane will now come down to R12.98, from R13.43 while at the coast 95 octane will cost R12.75 and 93 octane will come down to R12.97.
Neil Roetse, CEO of Debt Rescue, said the decrease in the prices of petrol and diesel will bring some relief at pumps to deeply indebted consumers.
“Once the price decrease has worked its way though the system, will see lower prices starting to reflect for all goods and services, relieving some pressure to house¬holds.
“With Christmas around the corner, some motorists and consumers at large may see this as an early present, but cau¬tioned of the likelihood of the deprecia¬tion of the rand ahead which can spoil the party,” he said.
Chris Hart, the chief economist at Investment Solutions, said this will bring some little comfort to motorists who are now spending a fortune in filling up their tanks and expect the petrol price to drop even further next month if international oil prices continues drop at this level.
Dawie Roodt, chief economist at Efficient Group, concurred that more decreases could be on the cards if the rand remained at present levels and if the oil price contin¬ued to decline