Petrol price 'may drop'
15 July 2009
The price of petrol may drop in August, due to the declining price of oil and not the rand, Efficient Group economist Dawie Roodt said on Tuesday.
"I think we'll get a cut of over 20 cents," Roodt said. "[The oil price] changes every day, but this [Tuesday] morning it had dropped by about 24 cents," he said.
"My suspicion is that in the medium to long term oil prices will go up quite a bit and the rand will hover around its present levels and then weaken," he noted.
The fundamental reason for the weakening in the rand would be the current account deficit. "It's just not sustainable over time," Roodt said.
In July the retail price of petrol rose by 37 to 40 cents a litre.
The prices of petrol 93 ULP & LRP rose by 37 cents per litre, while Petrol 95 ULP and LRP increased by 40 cents a litre.
Petrol 95 ULP in Gauteng province cost R7.90 a litre in July.