South Africa’s pertol price will fall the lowest level in nearly four years following the global drop in crude and a stronger rand.
The retail price of 95-octane gasoline will decrease by 3% to R20.75 per liter in the Gauteng province, the country’s economic hub, from 7 January, the ministry of mineral and petroleum resources said in an emailed statement on Sunday.
The wholesale price of diesel will decrease by at least 7%.
The rand gained more than 3% against the dollar in December, helping to bring down costs for the country that imports all of its crude.
With fuel directly accounting for almost 4% of South Africa’s inflation basket and indirectly affecting the cost of most consumer goods, the drop could lower expectations for price growth.
Annual inflation slowed to 3.5% in November, boosting hopes for an interest-rate cut later this month.
