A Fuel Price Decrease is expected according to the Department of Energy. The prices of 93 in Gauteng could decrease by 36.9 cents per litre, while the price of diesel with a 0.005% sulphur content could decline by 22.5 cents per litre on the 7 February 2018.
This comes despite the price of oil increasing in recent months to a price of almost $70 a barrel. The decrease in the fuel price can most likely be attributed to the strengthening of the Rand due to the election of Cyril Ramaphosa and change of leadership in the ANC. The Rand has since continued to strengthen with the expectation that Jacobs Zuma’s time as president could be coming to a close sooner rather than later.
This could provide motorists with some much needed relief, but economists warn that this could just be a temporary relief. The price of fuel is expected to go up globally due to the increase price in oil and we can expect that increase to hit South Africa in the coming months again.
This will be the second decrease in a row following several consecutive months of increases in 2017. It’s times like these that it is more important than ever to ensure that you have a budget and that you update your budget with the latest changes such as this decrease in fuel.
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