Mike Schussler is optimistic than 10 – 20 cents will be shaved off the petrol price, ending a run of seven consecutive increases.
Dare we dream? After enduring seven consecutive petrol price increases in 2018, the tide may finally turn in favour of South African motorists.
Mike Schussler, of economists.co.za and a two-time South African economist of the year, took to his Twitter account to share his forecast for November. He reckons that petrol could fall by up to 20 cents, but diesel could still at the mercy of fuel price hikes:
“Small good news info: SA may just get some petrol price relief in November. Petrol should decline by about 10-20 cents but diesel may still increase. At least not another increase in petrol which should help the pocket a teensy little bit.”
What may bring the petrol price down
One major contributing factor to this optimistic outlook is the falling price of crude oil. Selling for as much as R1 244 a barrel at the start of October, that price has now dipped by almost 10%, going for a much more affordable R1,130. The price has dropped from $87 to $80 in the last few weeks.
Another helping hand in this scenario is the rand’s performance against the dollar. After soaring above the R15 rate last month, the ZAR has steadily been fluctuating between R14.10 – R14.40 to the greenback.
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Higher or lower? Petrol price forecasts divided:
Schussler’s suggestions aren’t in line with what the Automobile Association of South Africa (AA) have forecasted, though. They believe that the political turmoil in the Middle East – and rising tensions between Saudi Arabia and the USA – will have an adverse impact on prices.
This year has been especially brutal for motorists and general consumers alike. Inland motorists are currently paying over R17 for a litre of petrol. In March, a litre of unleaded 95 petrol cost R13.76. If Schussler’s predictions are correct, this is the best case scenario for petrol users:
Inland: R16.89 per litre
Coastal: R16.29 per litre
It might not be much, but breaking the cycle will at least be a huge boost for us all. None of us should be paying R17 for our fuel, and hopefully, Schussler has got it right.
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