Oil price jump has not derailed expectations of fuel price cut
Plans by producers to cut output to stabilise prices will not be in place by the end of the year, so an early Christmas gift at the pumps is still on the cards
The biggest one-day rise in the oil price in over a month has not derailed expectations of a hefty cut in the petrol price next month. Brent crude rose as a much as 3% on Monday, but oil technically remains in a bear market and analysts expect plans by producers to cut output will not be in place by Christmas. The oil price has eased about 15% in dollar terms since the beginning of October. A stabilising rand has prompted some analysts to predict both falling fuel prices, and possibly an interest rate cut in coming months. The Central Energy Fund said on Monday the over recovery per litre of petrol so far in November due to movement in the oil price and the rand was R1.50, but these were based on Friday’s figures, said the Automobile Association’s Layton Beard. It was only halfway through November, but it still looked as if SA motorists could see a significant petrol price decrease in December, said Beard. The price of unleaded 93 petrol has risen about 19% so far in 2018, putting p...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.