Fuel price drop restricted by weak rand

Little change is expected for the petrol, while the price of diesel’s expected to drop by 73 to 75 cents/l.

Picture: EWN.

JOHANNESBURG - Economists say the latest adjustment to the fuel price is not a significant gain for consumers, as the weakening of the rand has restricted the extent to which this month's levy will fall.

The wholesale price of diesel is expected to drop by 73 to 75 cents a litre by midnight, while the petrol price is likely to show little change.

Economist Mike Schussler says fluctuating oil prices will see consumers suffer a loss of between R40 to R50.

"Where we have small decreases, it could have been closer to 30 cents instead of a few cents, and for diesel it could have been closer a rand a litre that would have been the price decrease."

Towards the end of last year, the rand took a huge knock over the sudden sacking of former Finance Minister Nhlanhla Nene, who was replaced by little known parliamentarian Des van Rooyen, before President Jacob Zuma settled on Pravin Gordhan as the current minister.