Petrol price 'likely to fall R1 a litre'

Tamlyn Stewart

Tamlyn Stewart

Relief for motorists with the petrol gauge on reserve is in sight.

Petrol prices should sink by about R1 a litre from next week Wednesday, say experts.

Econometrix economist Tony Twine said: "Oil prices have fallen, bringing down international crude prices. The over-recovery for August so far is pointing to a price cut."

Twine said the price cut should be around R1 a litre - "there or thereabouts".

That would see unleaded 93 octane fall from its current price of R10,20 a litre in Gauteng to R9,20 a litre.

"The big variable depends on whether there is any adjustment to the on-shore portion of the price, for example the retail margin," he said.

Fuel retailers have called on the Department of Minerals and Energy in recent weeks to increase retailers' gross profit margin, complaining of higher cost pressures and an increasing number of criminal attacks on service stations.

The news for diesel and paraffin is even better. Twine forecast that diesel prices could fall by as much as R1,50 a litre, and paraffin by around R1,40 a litre.