Petrol price cut on the cards
A drop in fuel prices is good news for inflation as goods will cost less to transport.
* NOTE: The energy department has subsequently announced a decrease by 69 cents per litre, while diesel will drop by 54 cents from next week.
JOHANNESBURG - Despite a weak rand, the Automobile Association (AA) says motorists can expect good news when fuel prices are announced later this afternoon.
The AA says the latest figures show that the petrol price will drop by between 71 and 77 cents a litre.
Diesel is set to drop by 50 to 53 cents a litre, and illuminating oil by about 56 cents.
The price of Brent crude oil has dropped significantly over the past month, with over-supply in Opec countries and an increase in shale gas supply.
The AA's Layton Beard says fuel prices would have seen an additional drop if the rand had remained strong.
"The rand's weakness against the US dollar has been expensive for motorists. Fuel prices would have dropped by an additional 25 cents a litre if our currency had remained at its late July levels."
The drop in fuel prices is good news for inflation as goods will cost less to transport.
It's hoped that this will lead to a decrease in the price of food and other goods.
The rand has been trading at record levels against the pound and dollar, with major concerns that inflation will move out of the Reserve Bank's target of between three and six percent.