Petrol Price Drop Predicted For February
It seems that there may be a little relief ahead for the transport industry and vehicle owners in the form of a petrol price drop coming.
The major petrol producing countries recently decided to reduce the amount of fuel they will be selling in the weeks ahead (greedy so and so’s) which normally pushes the price of fuel up. Less fuel, for the same amount of people who want it means that following the laws of supply and demand that prices will go up. In fact, it is predicted that the price per unit (barrel) will increase by 7 US Dollars (which would normally mean an extra 6 Cents /litre increase for us in SA).
‘the Rand has been doing surprisingly well and has been trading surprisingly consistent verse the Dollar’
Fortunately for South Africans, the Rand has been doing surprisingly well and has been trading surprisingly consistent verse the Dollar (we buy fuel in Dollars). The Rand To Dollar rate recently improved from R13.46 for one Dollar to R12.36 for a Dollar. So, this means that though the actual fuel will cost more in dollars, we have to pay less Rand to get it.
The long and the short of it is that, while the Rand holds steady, the price of fuel will then fall for South Africans (till they bump the price again) by as anywhere from 36 Cents up to 41 Cents, per Litre. This also means the price of paraffin should drop by around 26 Cents (according to the AA).
‘the price …will …fall…anywhere from 36 Cents up to 41 Cents’
Will It Hold?
Local politics and the value of the Rand vs Dollar will continue to dictate the exchange rate (you can check the bottom of this webpage to see the current exchange rate) and it depends greatly on the upcoming February Budget Speech (where government has to pull several Billion out the hat) as to where the fuel price will go in the months ahead but for now this seems to be some good news to start the year off.