The price of petrol dropped at midnight on Tuesday. Motorists are paying 20 cents a litre less for both grades of petrol – 93 and 95 octane - while drivers of diesel vehicles are paying 32 cents less for their fuel today.
But Rocco Strydom, a director at Elegant Fuel says the exchange rate, and to a lesser extent the international oil price, are going to mean these prices aren't going to be around for long.
We can already see a 7c per litre under recovery on petrol so all indications are that we are heading into a period of sustained fuel price increases. The severity will be determined by how volatile the rand dollar exchange is, and not necessarily the fluctuation in the oil price, which is minimal.— Rocco Strydom, Director at Elegant Fuel
Strydom says that while he agrees with many economists that oil will fluctuate between $50 and $60 per barrel, it is factors like potential ratings downgrades could contribute to pressure on consumers in 2017.
We are in for a bumpy ride!— Rocco Strydom, Director at Elegant Fuel
Listen to his full interview with Stephen Grootes below...