A stronger rand and stable oil prices have seemingly turned the tide for fuel prices in South Africa – especially diesel – but volatility in the market means things can also swing the other way.
After starting the month on the back foot, a swing in fortunes is in play for diesel prices in South Africa – with a sizeable under-recovery turning into a flat balance – and stirring hope for next month.at the start of the month to a flatter rate, ranging from -0.5 cents per litre to an over-recovery of 1 cent per litre.
A flat or even positive move for diesel prices will be some welcome relief to industry in South Africa – particularly those in the logistics and agricultural sector where diesel vehicles are used. The main driver behind the stronger recovery in fuel prices is a much more supportive rand/dollar exchange rate, with the local unit sticking well below the R19/$ mark at around R18.70.
According to Investec chief economist Annabel Bishop, oil markets are showing volatility due to demand patterns, supply issues, and disruptions in the Middle East.“From an inflation point of view, higher crude oil prices place upwards pressure on targeted inflation measures, and risk further delaying the start of the interest rate cut cycle, which will also contribute to the moderate nature of growth,” Bishop said.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Big surprise for retailers in South Africa – but consumers still feel the painRetail sales exceeded expectations in December – but the strain on households and consumer spending is clear.
Read more »
Big shift for emigration in South Africa – why expats want back inWhile many talk about green pastures elsewhere, experts are witnessing a surge in expatriates wanting to return home.
Read more »
South Africa’s minimum wage vs the world – with another big hike hitting in MarchThis is how South Africa’s National Minimum Wage compares to other countries around the world.
Read more »
NBA bosses rave about South Africa’s potential to become a big basketball playerNBA bosses rave about South Africa’s potential to become a big basketball player
Read more »
Big shake-up ‘almost certain’ for South Africa, shows new pollNew election poll data shows the EFF, IFP, and ANC losing support.
Read more »
South Africa Emerges as America's Largest Trading Partner in AfricaSouth Africa has become America’s largest trading partner in Africa, with over $20-billion of two-way trade of goods. More than 600 American businesses now operate in South Africa. Africa's population is expected to grow significantly by 2050, presenting opportunities for investment. US Secretary of the Treasury Janet Yellen visited South Africa to strengthen ties between the two countries and continents.
Read more »