FUEL
Petrol price relief on the cards
Posted Mon, 20 Feb 2006
The price of petrol could come down 16 cents a litre on the
first Wednesday of March, T-Sec chief economist Mike Schussler
said.
He further predicted a six cents fall in the diesel price.
Schussler said he expected a small decrease in April as well,
despite a five cent a litre tax increase — for the Road Accident
Fund — that kicks in that month.
The decreases would push down the consumer price index
(mortgages excluded) from 4.2 to 4.1 percent.
"This means CPIX inflation will be below four percent by
mid-year, raising the possibility of an interest-rate cut,"
Schussler said.
He said the decreases resulted from world oil prices falling in
recent weeks on the news that the US had adequate reserves despite
a cold winter, and an adequate supply of the liquid on world
markets.
On Monday morning, the future oil price was under 59 dollars a
barrel and the spot price under 60.
"This means the market is being driven
by fundamentals, not
speculation," Schussler said.
Sapa
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