MOTORISTS will be able to save more this festive season, as the petrol price is expected to decrease by more than 70 cents a litre on 3 December, while the wholesale price of diesel could drop by about 50 cents.
The Solidarity Research Institute (SRI), said the drop in fuel price will result in the cost of petrol being less than it was a year ago. The trade union said this will be the first time in five years that petrol is cheaper on an annual basis.
According to media reports, Paul Joubert, senior economic researcher at the SRI, the weaker rand is counteracting a reduction in local fuel prices.
He said the rand traded at an average of about R11.12 against the US dollar last month and has traded marginally weaker at an average of R11.14 during November.
Joubert added that the prices of international petroleum product prices as well as other contributing factors that determine the cost of local fuel have continued to decline together with oil prices during this month.
The expected decrease follows a 45 cents per litre cut on 5 November. The Department of Energy will announce the final fuel price changes on 28 November.
