Petrol price bonanza
It's the New Year and good tidings are to be found.
The petrol price is going down again on Wednesday the 7th of January 2009.
The price cut will be between R 1.34 and R 1.37 a litre depending on what type of fuel it is.
This is what the papers had to say about it.
The Mail and Guardian called it in with the headline 'New Year cheer as petrol price set to drop'. They noted the previous drops in the petrol price that occurred last month and the month before. One of the major reasons for the drop is the strengthening of the average Rand / Dollar exchange rate over the period.
Business Day reckoned that we are set to benefit from more price cuts as the global price of oil is expected to be under pressure for at least the next six months. Growth in emerging markets, as they start to come right again after the Western crash, will drive an increase in oil prices, when it happens. The Fuel Retailers Association head was quoted as such 'As you know, our retail margin is fixed in cents a litre. So when the price goes down, people buy more petrol, which is good for us. On the other hand, when the fuel price goes up, people cannot afford to buy more and our margins come under pressure'.
The Times followed through on this angle, going more in depth into the issues surrounding the position of petrol stations at the moment. Petrol stations are under pressure and the margins are very small, some have gone out of business while others have diversified into retailing and complementary products in order to survive. The article finished with a breakdown of where the price cut has come from. 'The latest price cut can be broken down into 82.87c a litre for cheaper oil, 6.83c a litre due to the rand strengthening against the dollar, and cutting the 44.85c a litre "slate levy" to zero'.
Business Report called the cut a New Year's gift from the government and detailed the various fuels that will be affected by the new pricing regime. Diesel would drop by 167.95 cents per litre and illuminating paraffin would drop by 131.3 cents a litre.
iAfrica carried a brief update on all the prices.
The other major story out there today is the state of the economy and what we can expect this year.
Business Day carried a piece that held out for an optimistic outlook for 2009, but wanted to see how traders would feel after they returned from their holidays. They were also waiting to see what the ANC election manifesto would promise as it would outline if there were to be any changes to economic policy.
Business Report carried opinion that we would avoid another Great Depression as the effects would be balanced out by further strong growth in Asia.
The Dispatch looked at how a globalised supply chain would be able to spread the comeback and pull us out of this economic hole quicker than expected.
The Times called it a tough year ahead but reckoned we can survive. Their major issue was how our economic policy would stand up to the political pressures it is expected to face.