Fuel price cuts expected to slow down inflation: Economist

Economists expect inflation to continue to slow following the announcement of another fuel price cut which takes effect from midnight on Tuesday night.

Fuel prices are set to decrease on Wednesday for the fourth consecutive month.

The Department of Mineral and Petroleum Resources has announced a petrol price decrease of 92 cents per litre for both grades.

The wholesale price of diesel is set to decline by 79 cents a litre and illuminating paraffin by one rand 38 cents a litre.

Wits professor Jannie Rossouw welcomed the decline.

“The announced decline in the South African Fuel Price for September 2024 is a very positive development as it would reduce inflationary pressure in the South African economy. This fuel price decline was informed by an improvement in the exchange rate of the rand so if the rand stays at current levels this lower fuel price might be sustainable however this positive development can only continue if we don’t see a sharp decline in the exchange rate of the rand in the coming months.”