Petrol price to take a nosedive in April, economists predict

ECONOMISTS on Monday said they believed that motorists were in for some relief next month buoyed by a stronger rand and lower international oil prices, with a big cut in the petrol price predicted for April.

- YOGASHEN PILLAY

This will bring some reprieve to financially constrained consumers after the South African Reserve Bank decided to leave interest rates unchanged at 7.5% per annum on the back of steadily rising inflation.

Old Mutual Group chief economist, Johann Els, on Monday forecast a petrol price cut of around 85 cents a litre for next week.

“At the moment, the daily recovery is running at 58 cents a litre. The running average for the month thus far is 87 cents per litre, because the daily is slightly lower than the running average the average will ease to around 85 cents a litre by the time the actual change is calculated,” Els said.