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Petrol price drop in the pipeline

A CUT in the petrol price of between 40c and 50c can be expected next month as the rand continues to surge and the oil price remains under pressure, according to a leading economist.

A CUT in the petrol price of between 40c and 50c can be expected next month as the rand continues to surge and the oil price remains under pressure, according to a leading economist.

ETM economist Russell Lamberti said yesterday there was a lot of pressure on growth-related commodity prices. "Growth-related commodities like oil and copper are looking toppish. The big story is also the rand."

Lamberti said his research showed that a daily product over-recovery was coming through in South Africa as a result of these factors and this over-recovery would get quite large quite quickly.

"The average over-recovery could be in the order of 40c and 50c which can be used to justify a cut," he said.

This comes after the retail price of all grades of petrol increased by 36c a litre on September 2, hitting struggling consumers' pockets.

If the cut happens, petrol in Gauteng will cost between R7,55 to R7,65 a litre from R8,05; and R7,32 to R7,42 at the coast from R7,82 a litre. - I-Net Bridge

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