As long as government doesn’t take the opportunity of a collapsing oil price to pass-through a fuel levy to cover eTolls and bail out Sanral (don’t share the idea with them), petrol prices may be heading back to levels last seen in 2012. That means a price of around R10 a liter for 95 ULP petrol in Gauteng could be on the cards.
The global oil price in Rand terms has fallen around 40% from the levels of late 2013 and most of 2014.
And the pump-price follows this global oil price pretty closely, although is less volatile, because it is regulated. As things stand there’s around a R1 per liter price decline coming in January.
Lower CPI inflation, cheaper to run your and Eskom’s generators, and likely to keep the Reserve Bank in a friendly mood with unchanged interest rates for longer.