THE Energy Department has given notice of a significant fuel price decrease next month‚ the third consecutive cut which has been made possible by the decline in the price of crude oil on international markets over the past few months.
Brent crude oil was trading at $61.38 yesterday having fallen steadily from the more than $100 level it held a year ago‚ though the benefits of the decline have been offset to some extent by the weakening of the rand/dollar exchange rate.
The decline in the price of petrol will assist the Reserve Bank in its efforts to rein in inflation.
The bank’s monetary policy committee will meet next month to decide what to do with interest rates.
Earlier this month, the petrol price decreased by 69c/l and diesel by 53.5c/l. This followed the November decline of 45c and 60c respectively.
The department has also noted that oil companies had provided the assurance that petrol and diesel would be available throughout the country over the festive season.
With Eskom guzzling millions of litres of diesel to run its open cycle gas turbines‚ there was a concern over the availability of the fuel for general consumption. – I-Net