Motorists will benefit from World Cup

By Staff Writer
Petrol prices will drop 27c a litre on Tuesday midnight, taking 93 octane - commonly used inland - to R8.27/l and coastal 95 octane to R8.21.

Motorists will enjoy these lower prices for an extra week until July 14. The usual system of government-set fuel prices taking effect on the first Wednesday of the month is being postponed by a week next month thanks to the World Cup.

''The minister of energy decided that, to stabilise fuel prices during the Fifa World Cup soccer tournament, the next fuel price changes will only be effected on Wednesday, 14 July 2010," the state-owned Central Energy Fund said in its monthly price announcement.

Econometrix senior economist Tony Twine warned: ''Let's not bank on another cut in July. Crude oil prices have recovered quite considerably since last week. The changes are threatening to become an increase of 10% over the lows of last week in the space of five trading days. It's not very good for July."

But developments in the international arena could turn the situation around.

''A renewed bout of the jitters that have accompanied the outlook for the euro and eurozone economic performance could easily drag oil prices down again," Twine said.

"(But) A build-up in confidence could easily push the oil price back up towards $88 a barrel where it was at the beginning of May."

The good news for airlines is the wholesale price of paraffin - which closely tracks jet fuel - is dropping 13c/l, taking it to R5.53 inland and R5.25 at the coast.

The wholesale price of diesel (government allows garages to compete in this market, whereas the retail price of petrol is fixed) is falling 15c/l to R7.66 inland and R7.53 at the coast.

This article first appeared on www.timeslive.co.za

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