Fuel price decrease will provide relief for motorists: Economist - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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The retail price of petrol has dropped by 92 cents a litre for both grades.

The wholesale price of diesel has declined by 79 cents and the cost of diesel with lower sulphur has dropped by R1.05.He says, “The fact that the rand has strengthened has enabled inflation rate pressures to come down and we have seen as a result this fourth consecutive month of big fuel price cuts.

The prognosis now is that the inflation rate may well fall to below 4% in the next couple of months and that will pave the way for the Reserve Bank to cut interest rates for at least half a percent before the end of the year. It will be the first cuts in interest rates in a year and a half.

 

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