Good petrol news in pipeline for SA motorists

(Article at www.iol.co.za)

The price of petrol could drop by about 35 cents a litre from next Wednesday.

Efficient Group economist Dawie Roodt said yesterday that although the rand was weaker, the oil price was dropping - a 35c cut was therefore on the cards.

He expected the price of diesel to drop by about 20c a litre.

The price of Brent crude for December delivery has dropped to $59,02 a barrel, the lowest since February last year.

This is in spite of last week’s decision of the Organisation of Petroleum Exporting Countries to cut output by 1,5-million barrels a day to 27,3-million barrels, starting next month, in an effort to halt falling prices.

“Opec produces only 40 percent of the world’s oil. And the actual number of barrels is only part of the equation - what’s important is demand.

“Of course the supply side is significant, but more significant is world demand, which is slowing down,” Roodt said. - Sapa

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