A brief petrol price cut

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GALOOME SHOPANE The expected fuel price cut will be momentary. This is according to North West University’s Andre Mellet.

The expected fuel price cut will see petrol decrease by 28 c/l and 15 c/l for diesel on Wednesday.

Mellet says the two main reasons behind the price cut are the international oil price and the movement in the exchange rate.

The international oil prices declined from 112$ to 109$ a barrel. And the rand dollar exchange rate improved from R10/$ to R9.93/$.

“I can’t see that this will continue because the rand is currently depreciating, and as we are heading for the very cold winter period in the northern hemisphere and there’s always big demand for oil and gas and workload on heating. The oil price that’s declining now is very, very short lived, it’s going to increase again,” he says.

Mellet believes the price cut is not substantial, but says it’s an improvement in the inflation rate and will help consumers’ pockets.