Sunny outlook for consumers as fuel prices, interest rates set for further drop
Economist Chris Harmse says the ongoing conflict in the Middle East is unlikely to have a negative impact on international oil prices.
This comes amid concerns that the escalating conflict between Iranian-backed Hezbollah and Israel could lead to a spike in international oil prices.
The Israeli military said Tuesday that troops have started "ground raids" in villages in southern Lebanon, after militant group Hezbollah said it had targeted "enemy soldiers" at the countries' border.
A Lebanese security official said Israel had also conducted at least six strikes on south Beirut, while Syrian state media reported deadly strikes around the capital Damascus.
Despite international calls for de-escalation, Israel has vowed to keep fighting Iran-backed Hezbollah and declared a military zone in parts of its border with Lebanon.
On Monday, the Department of Mineral and Petroleum Resources announced that the fuel price will be cut by more than R1 in October.
This is the fifth consecutive decrease in 2024.
According to the department, the drop is due to the stronger rand against the US dollar and lower international oil prices.
Harmse says he expects the price of fuel to drop gradually until the holiday season.
“I don’t think the Middle East war will have a negative effect on oil prices because it didn’t happen over the last six to eight months. Instead, we have seen the oil prices come down.
“So, I’m optimistic that we may see another R1 to R1.50 cents drop in the petrol price before the summer holidays.
“It is evident at this stage that the interest rates in South Africa will be cut by 50 basis points in November, so holiday makers may have a few more rands to spend during the Christmas holidays.”
ALSO READ
