The Department of Energy will announce a substantial decrease in fuel prices this week.
Petrol prices are expected to drop by as much as 70c per litre while diesel will decrease by about 50c for a litre of juice. Although this is good news for motorists in the short-term, the outlook going forward is far more grim.
Temporary Fuel Price Decline
Unless you’ve been living under a rock for the last while, you’ll know that the South African economy, and the world at large, is in a bit of a pickle at present. China’s economy is retracting, the Rand is in shambles, consumers are in debt, farmers are experiencing drought and economic growth has slowed down. To make matters worse, the South African manufacturing sector is looking likely to head to a recession and strike action in the gold and platinum sectors is likely.
In a report published by Business Tech, independent economist, Dawie Roodt warns that consumers should do everything they can to reduce their debt and avoid taking on more debt. We are facing a very uncertain future and South Africans need to be mindful of this and prepare to tighten their belts for the tempest that is coming our way Roodt said.
With the Rand at current levels, Roodt also warns that a further drop in fuel prices next month is unlikely and that the economy would grow less than the current predictions of 1.2%.
Still, we welcome lower fuel prices, which will provide consumers with some much-needed relief.
If the fuel price matters to you, have you considered switching vehicles to a more fuel-efficient one? Check our list of most fuel efficient cars here, and you can practice our fuel efficient driving tips here.
