The price of petrol drops by 45 cents a litre today, fueled by the fall in international crude oil prices. The price of diesel falls by between 21 – 24 cents a litre. Had the Rand/dollar exchange rate not been so weak, the decrease could have been twice as big.
The impact of the petrol price decrease can only be positive for the tourism industry, which has been severly affected by petrol prices which peaked at over R 10 a litre in winter.
The fall in the price of petrol will ease the rate of inflation, which has showed its first small decrease. It could auger well for a decrease in the interest rate.
The Cape Argus reports that a substantial decrease in the price of petrol can be expected in December, and will depend on the exchange rate at that time. The Rand is strengthening at the moment.
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