Time To Fill Up
Petrol Price Drop Brings Some Relief
The much anticipated drop in petrol prices has arrived and drivers can be seen filling up at petrol stations across the country.
At the start of 2022 petrol only cost R19.61 inland then shot up to a record R26.74 due to the international energy “crisis” caused by the EU and USA declaring sanctions on Russian energy and it’s knock on effect.
95 Petrol drops by R2.04 down to R23.38/Litre (Gauteng)
Diesel drops by 56c/Litre
Paraffin drops by 82c/Litre
Unfortunately, the Rand recently plummeted vs the US Dollar as markets reacted to expectations that the Americans will keep their interest rates high for longer (low compared to ours but still higher than it used to be in the recent past).
This resulted in the price relief being less than hoped for and there are other pressures besides the Rand/Dollar exchange rate ahead.
‘it is likely that the EU may shift to using oil more than gas in the months ahead’
With Russia cutting off gas to much of Europe it is likely that the EU may shift to using oil more than gas in the months ahead which may then once again squeeze the availability vs demand. When that happens prices tend to go up.