Drop in fuel prices might continue until December
The group of oil producing countries, Opec, says it’s confident that prices will stabalise in 2016.
JOHANNESBURG - With a 51 cent decrease in the petrol price at midnight, it's hoped that fuel prices will drop further at the next month as the oil price continues its decline.
Brent crude has dropped to below 50 dollars a barrel, which is good news for consumers hit by the rising interest rate, e-tolls and increased food prices.
The group of oil producing countries, Opec, said it's confident that prices will recover by December.
Opec said it expects a more stable 2016, predicting rising global demand. This is the group's latest indication that it's sticking together to defend prices in a very competitive market.
But US companies indicated earlier this year that the country was moving towards being energy efficient due to shale gas and other factors.
General consensus is that fuel prices here should continue to decline provided the oil price remains low and the rand doesn't lose more ground.