The petrol price could drop by between 90c and R1 a litre next month, which would boost growth in real household disposable income, according to estimates by Azar Jammine, the chief economist at Econometrix.

The Department of Energy on Monday projected a R1.03 a litre fall on January 7.

Such a decline would take the Gauteng petrol price to R11.44 a litre, which would be the lowest since August 2012, from R12.47 a litre at present. The Gauteng petrol price peaked at a record R14.39 a litre in April.

Jammine said the drop in the petrol price was as a result of falling crude oil prices.

However, the rand fell steeply against the dollar last week, hitting a six-year low of R11.72 on fears that Fitch could downgrade South Africa’s debt ratings.

“Things can change a lot between now and the end of the month,” he said.