Experts Predict 'Likely Drop' of Petrol From R20 a Litre As Relief on the Cards for SA

• Motorists have been advised that the price of fuel is likely to drop after a record hike at the start of December
• This is after South African motorists were left needing to fork out R20 a litre for petrol for the first time in history
• The rand has made inroads against the US Dollar to regain some strength, helped along by a global decrease in oil demand

JOHANNESBURG - South African motorists were taken aback when the price of petrol shot up to above R20 a litre at the start of December. But relief may not be so far away after all as energy experts now foresee a likely drop in the fuel price.

The Department of Mineral Resources and Energy is expected to announce the new petrol price adjustment on Friday, making way for motorists to recover from the country's record fuel price hike that came into effect earlier this month after the rand weakened against the US Dollar.

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Since then, the local currency has made significant inroads to regain some of its strength, having plummeted to R16.15 at the time of the steep hike. The current outlook means motorists can expect to cough up less than R20 for a litre of fuel at the start of the New Year.

According to a SABC News report, current global fears over the spread of the Covid-19 Omicron variant have led to a decrease in worldwide demand for oil resulting in a steady fall in international prices.

Insurers out to get motorists

Meanwhile, in light of the previous record price increase, South Africans have resorted to carpooling and lift clubs to beat record petrol prices, Business Tech reported.

Practical as it may seem, insurers have advised motorists to consider disclosing any changes in their regular driving patterns as insurance cover and payouts could be affected in the long run.

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"For instance, if the designated driver is not the same as the one quoted in the insurance policy documents and is involved in an accident, the claim may be rejected," said insurance company Santam in a statement.

"If money changes hands, things can become trickier, especially if the money received by the insured person is more than what is necessary to cover petrol, maintenance, parking, etc., as it could be considered as a commercial transaction," Santam added.

SA horrified by fuel prices going up by R20 per litre

Elsewhere, Briefly News previously reported that the Department of Mineral and Energy announced on 1 December that fuel prices were set to go up by 81 cents. The increase meant fuel was expected to cost over R20 per litre in inland provinces such as Gauteng.

At the beginning of November, fuel prices increased drastically by R1.21 per litre for petrol and the price of diesel by R1.48. Diesel was set for a price increase of between 72.5c a litre and 74.5c, according to eNCA.

The department said among the contributing factors to the steep hike was the price of Brent crude oil, which had seen an increase around the world, adding that other countries were also experiencing record-high fuel prices, according to Fin24.

Source: Briefly News