More good news for cash-strapped South Africans
Iran wants to re-enter the energy market, which may further ease fuel prices.
JOHANNESBURG - With fuel prices set to drop tonight, there may be more good news for consumers.
The price has plunged since January and is now trading at around $53 a barrel.
Iran now wants to re-enter the energy market which should further ease fuel prices.
Iran has announced, it intends to begin its re-entry by introducing at least a million barrels of oil a day from March next year and then boosting its output.
With the gradual easing of sanctions against Iran, due to the agreement over its nuclear programme, the country says it wants to reclaim its place in the Middle East oil market.
This will have a dramatic effect on prices in a market already hit by oversupply.
Iranian Oil Minister Bijan Namdar Zanganeh said, "Can we wait and not produce, after lifting the sanction? Who can accept it in Iran?"
At midnight all grades of petrol will drop by 69 cents per litre, while diesel will cost you 54 cents less.
Economists say an oil glut due to Iran entering the market is unavoidable, which is good news for cash-strapped South Africans.