Fuel price decrease will provide relief for motorists: Economist
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Chief Economist at Econometrix, Azar Jammine, says the latest decrease in the fuel price, which took effect at midnight last night, will provide some much-needed relief for motorists.
The retail price of petrol has dropped by 92 cents a litre for both grades.
The wholesale price of diesel has declined by 79 cents and the cost of diesel with lower sulphur has dropped by R1.05.
Jammine says this is also a positive development.
He says, “The fact that the rand has strengthened has enabled inflation rate pressures to come down and we have seen as a result this fourth consecutive month of big fuel price cuts. The prognosis now is that the inflation rate may well fall to below 4% in the next couple of months and that will pave the way for the Reserve Bank to cut interest rates for at least half a percent before the end of the year. It will be the first cuts in interest rates in a year and a half.”
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