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‘Impact of latest petrol price decrease remains to be seen’

The Energy Department has announced that from Wednesday a litre of petrol will cost you R1,84 cents less, while diesel is going down about R1,45 cents.

Picture: EWN

JOHANNESBURG - The Automobile Association (AA) says it’s too early to speculate whether the significant drop in fuel prices is a sign of things to come in the new year.

The Energy Department has announced that from Wednesday a litre of petrol will cost you R1,84 cents less, while diesel is going down about R1,45 cents.

After several hikes earlier this year that brought prices at the pumps to record highs, the decreases are being seen as a massive relief for cash-strapped consumers heading into the holidays.

The AA’s Layton Beard said: "Very importantly as well is that the diesel price has come down. The impact that will have on the economy remains to be seen in terms of input costs for a lot of small businesses and the farming sector."

However, he says it’s too early to speculate on any decreases in the new year.

"Looking at the numbers it’s very difficult to say which way it’s going to go in January. I think if the trend continues with the oil prices and with the rand/US dollar exchange rate.

"We’ve seen the rand has firmed over the last couple of weeks, if that trend continues, then we could see another decrease in January. It is really too early to say though."

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