Skyrocketing petrol prices have been a big talking point in South Africa this year, but locals’ pockets may soon be jingling with more change than usual – the latest data from the Central Energy Fund (CEF) shows the country is in for its biggest fuel-price drop of the year.
According to the CEF, 95 Petrol will have an over-recovery of 167 cents, while 93 Petrol will experience an over-recovery of 164 cents and Diesel will recover by 114 cents.
Economists warn, however, that political interference could still affect the final petrol price announcements in December.
Good news is that the Rand has stayed strong against major currencies in recent weeks, remaining just below R14 against the US dollar.
The South African Reserve Bank’s Monetary Policy Committee (MPC) has also decided to increase the interest rate by 25 basis points to 6.75% per year, effective from Friday, 23 November 2018.
A statement by the MPC revealed that three of its members preferred an increase, while three members preferred a hold, with the final say effectively falling on the governor’s shoulders.
The SARB last cut interest rates in March 2018, when it lowered the repo and prime lending rates to 6.5% and 10%.
Here’s an idea of how fuel prices have changed over the past few months:
The Automobile Association (AA) has warned motorists that this may be the last petrol price decrease South Africans experience for a long while.