Analysts expect a significant decline in fuel prices on the back of a steady decline in global oil prices and a stronger rand. The Central Energy Fund forecast data shows that the price of petrol may drop by between R2,90 and R2,94 depending on the grade. This while diesel prices are expected to decrease between R4,57 and R4, 97, depending on the grade. Brent crude oil prices have fallen sharply in recent days and are currently at around 73 dollars per barrel. Chief Economist at
Efficient Group Dawie Roodt, says: “The question is what the finance minister is going to do about the fuel levy because he certainly would like to recoup his tax collections over the last few months. So, if I was the finance minister, I would maintain the petrol price relatively high to see if I can get some of my tax losses back and after a couple of months, the petrol price would fall even further, assuming the oil price remains decent and the exchange of
the rand. The medium longer-term outlook is also quite positive. I expect the oil price to fall well below 70-dollars in a couple of months and with a bit of luck, we’ll see the rand trading below R16 the US dollar as well.” Related video | Concerns over cumulative effects of high fuel prices
fuel prices, petrol, diesel, Brent crude, rand, Central Energy Fund, fuel levy, Dawie Roodt, Efficient Group, oil price forecast