The expected drop of 54c per litre in the fuel price next Wednesday will bring much needed and welcome relief for workers who have to make use of private transport to get to work and back on a daily basis.
However, let us keep in mind that this means that fuel will still cost 10,4% more than in January this year.In January the price for a litre of 93 octane petrol on the reef was R10.43.
The higher fuel price results in higher prices for consumer goods, which are rarely adjusted downwards when the fuel price drops. In this respect the consumer is still bearing the brunt of the recent series of fuel price hikes.
We can only hope that the price of crude oil will drop further and that there will come a measure of stability in the Middle East. The US sanctions against Iran and the pressure on South Africa to support these, make any projections problematic.