Fuel prices drop after 6 months

SABC News Fuel Reuters - Fuel prices drop after 6 months

Motorists have a reason to celebrate, the price of fuel has dropped by almost R1 a litre. It is the first time in six months that petrol prices have decreased.

The price of 93 unleaded petrol now costs 96 cents less a litre, while 95 will cost 95 cents less.  Diesel will decrease with 75 cents per litre and a litre of illuminating paraffin will cost 57 cents less.

Last month, the Energy Department said that the fuel price decrease was as a result of a fall in international oil prices.

Analysts expect a further drop in fuel prices as concerns that the global economy could be slowing down.

International oil prices pushed back this week stabilising at below 65 US dollars a barrel.

An agreement was also reached by the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, to extend supply cuts until next year.

Analysts say oil prices could further stall owing to the global demand and US oil flooding the market.

The department of energy would have slashed fuel prices further had the Rand been stronger in June.

The Rand slipped at R15 against the US dollar last month.

 

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