Record petrol price drop expected

By Christopher Hoesl
20 September 2006

The petrol price is expected to drop by 66 cents per litre in the next month. This is the biggest drop in the petrol price ever reported in the country. The price of 93 octane petrol, is likely to drop to
R5.90.

Mike Schussler the sec chief of economist told the Cape Times that a price drop would be a result of a fall in the oil price because of sufficient supply, with no sanctions arising from situation in Iran and the cessation of hostilities between Lebanon and Israel.

While the current petrol price does not influence inflation, a drop in price could have an impact, not only for the consumer, but also on companies. Companies will expect to sell more products because people have more money to spend.