Consumers could get room to breathe

13 Jun 2011
Against a gloomy backdrop two positive developments stand out. One is that consumers may get the benefit of a fuel price cut at the end of the month. The second is that portfolio investment by foreigners remains strong. The two trends are connected, because a strong rand neutralises the impact of high oil prices; and healthy flows into local shares and bonds help keep the rand firm. Petrol prices are adjusted each month to keep them in line with prices of a basket of international oil products. In the month so far, the average daily overrecovery is running at nearly 25c a litre. If the price at the pump continues to top the basket price, motorists who are paying R10.23 a litre for 95 octane unleaded petrol in Gauteng will see the price trimmed for the second month in a row – after a reduction of 2c a litre this month.

http://www.iol.co.za/business/business-news/consumers-could-get-room-to-breathe-1.1082388