Fuel price projections following the latest decreases

An organisation called the People Against Petrol and Paraffin Increases (PAPPPI) has welcomed the latest fuel price decrease which took effect at midnight.

Both grades of petrol have gone down by 65 cents per litre, and diesel by between R2.35 and R2.41 per litre. PAPPPI’s national convenor, Visvin Reddy says motorists and consumers shouldn’t get too excited just yet:

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“We want to caution that these celebrations for these fuel cuts may be temporary and short-lived, because if you look at the volatility of the international crude oil prices it’s very likely that these prices will continue to rise in the coming months,” says Reddy.

Meanwhile the founder, Director and Chief Economist of the Efficient Group, Dawie Roodt has a different opinion.

“I have a suspicion that we could see another fall in the petrol price. The reason why I think so is because I think the international oil price will remain under pressure, and that’s the most important driver at the moment. The only remaining factor that could still influence the petrol price going up is the exchange rate of the currency, so with a bit of luck with the rand behaving itself, we do see that the international oil price is coming down. We could see another fall in the petrol price in January again,” concludes Roodt.