Economists say motorists can expect some relief when the new price of petrol is announced later this week. This after the petrol price went up above R20 a litre for the first time in the country’s history earlier this month.
South African motorists got a shock of their lives when it was announced that the price of petrol would go up to around R20, 35 cents a litre at the beginning of this month.
That was after the rand weakened to around R16,15 cents to the US Dollar.
But now, the rand has regained some of its strength thus improving the chance of the price of petrol to come back below R20 a litre.
Fears over the spread of the Omicron variant overseas has led to a decrease in global demand for oil resulting in a significant fall in the international oil price.
That too is expected to work in favour of local motorists in the near term.
The Department of Mineral Resources & Energy is expected to announce the new petrol price adjustment on Friday.
Calculation of fuel price
Meanwhile, earlier in December the Automobile Association (AA) welcomed the suggestion by Finance Minister, Enoch Godongwana to change the way fuel price is calculated.
Godongwana told Parliament during a question and answer session that government was considering reforming the way the fuel price is calculated.
AA Spokesperson, Layton Beard says this is a step in the right direction.
Fuel Costs | Treasury may intervene to support changes in fuel pricing: