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Transport News

It is always nice when things get cheaper and local drivers are looking forward to a coming petrol price drop next month.

A Saving of More Than R1 per Litre

According to data from the Central Energy Fund (CEF), prices for both petrol and diesel are currently seeing a significant over-recovery (we are currently paying more than we could).

This means that petrol is expected to decrease by some between R1.22 and R1.30 per litre, while diesel could drop by around R1.11 to R1.13 per litre.

The price of illuminating paraffin is also expected to come down by about R1.05 per litre.

Stronger Rand & Lower Brent Costs

The Rand has been bouncing up and down a little but overall we have seen it being a bit stronger against the Dollar which is good for petrol prices.

If you combine that with lower prices per barrel of Brent crude ($72.50 per barrel, down from its previous high of nearly $80 in August) it means that we will end up paying less Rand per barrel for cheaper oil. 

Apparently, the lower oil prices are due to lower demand from China and higher interest rates in a bunch of countries, which has, much like SA, slowed their economic growth.

Lower Prices Are Coming

While things do often reflect back on what the US Federal Reserve do with their rates it does seem very positive for a petrol price drop of more than R1.

That will either see local businesses making a little extra profit or maybe they will even be able to drop the prices of their services or products a bit to help out their clients (all of us).