Petrol price 'likely to fall'

Lihle Z Mtshali

Lihle Z Mtshali

International oil prices are threatening to breach $90 (about R613) a barrel, but the local petrol price might drop when government announces November's fuel prices.

Analysts said the rand's strength against the dollar could result in government cutting petrol prices by between 5c and 7c when it fixes the retail price of petrol at the end of the month.

Danelee van Dyk, an economist at Standard Bank, said: "We are likely to see a 7c cut in petrol prices just because the rand has strengthened so much.

"We are currently paying more than what we would be if the rand's strength had been taken into account."

However, she said the price cut would only be possible if the rand continued its upward gains.

If the oil price climbed substantially higher and the rand weakened, we would probably see a marginal increase in petrol prices.