Fuel prices likely to ease in coming months, predicts economist
An FNB economist believes consumers could continue seeing an easing in the fuel prices over the coming months.
On Monday, the Department of Mineral Resources announced that both grades of petrol will decrease by R1,78c per litre.
Diesel will decrease by 85 and 82 cents per litre.
The price of illuminating paraffin will decrease by 97c per litre at wholesale, and the price for Single Maximum National Retail price (SMNRP) for IP will decrease by R1,30c.
The price of LP gas will increase by R1,49c per kg.
FNB Senior Economist Koketso Mano says the rand is likely to appreciate.
"We continue to see the rand remaining undervalued, as we process still hawkish monetary policies in advance economies, especially with inflation forecast being lifted for the year 2024.
"We also processing the development of the worse fiscal performance relative to the February budget. It is only after the 2024 elections that we see the rand appreciating towards fair value and placing upward pressure to inflation."
Mano says fears of the wider conflict in the Middle East could have an impact on the oil prices.
"It fears of a wider conflict in the Middle East and the impact that could have on output that has kept the market fairly volatile, with prices going for 90 USD per barrel. What has contained the prices of input petroleum has been lower refinery margins and these could support lower prices for 2024.
"We think that pump prices could continue easing in the coming months however, evolving geopolitical risks warrant some caution when coming to these predictions," she added.
ALSO READ:
