Petrol price to drop by 18 cents
Motorists are however warned that the petrol price could increase in the coming months due to the performance of the rand.
Petrol is set to drop by 18 cents on Wednesday following a 99c cents decline in August. Diesel will fall by 48 cents and paraffin price by 63 cents.
Although the petrol price decrease will reduce the monthly consumer inflation rate by 0.1 percentage points, this will help ease inflationary pressure and allow the Reserve Bank to leave interest rates unchanged for an extended period.
Since the peak in April 2014, the petrol price had now declined by total of R2.22 cents or by 15.4%, however, motorists are warned that the petrol price could increase in the coming months due to the performance of the rand.
The 18 cents petrol price drop would have been more had the rand maintained firmer levels but the rand weakened sharply towards the end of August first on a domestic political risk, due to the police’s special investigative unit, the Hawks, requesting Finance Minister Pravin Gordhan to present himself before it for a warning statement, sparking market jitters that the Minister would soon be charged and later on global developments with uncertainty over when the US Federal Reserve will hike rates again.
