Economist cheers massive petrol price drop
Economist Dawie Roodt praised the latest petrol price drop and adds this year's drop has come just in time.
JOHANNESBURG - Motorists will from Wednesday pay a massive low for fuel for the first time in six years.
The price of petrol is coming down by at least R1,23 per litre while diesel will drop by between R1.04 and R1.05 per litre.
Illuminating paraffin will decrease by R1,44 a litre and liquefied petroleum gas (LPG) will decrease by R2,10 a kilogram.
The last time the fuel price decreased by more than R1 a litre was in January 2009 when the price dropped by R1,37 a litre while diesel decreased by up to R1,67 a litre.
Economist Dawie Roodt says this year's drop has come just in time.
"It will have a positive impact on the inflation rate."
Roodt says this is not only good news as the global economy is slowing down and as a result other commodity prices are also falling.
Earlier, the Department of Energy said the main reason for the fuel price decreases is the continued drop in the price of crude oil which led to a decrease in the prices of petroleum products in the international markets.
However, the depreciation of the rand against the US dollar led to an increase in the contribution to the Basic Fuel Price by between 17,92 c/l and 19,75 c/l.
This was off-set by the drop in the crude oil price during the period under review.