However, due to the general fuel levy hike recently announced by the Minister of Finance, Enoch Godongwana, motorists will see only a slight decrease at the pump.

Both grades of petrol, 93 and 95 octane, will decrease by five cents per litre, diesel will decrease by 36 cents per litre, illuminating paraffin at the retail level will decrease by 75 cents per litre, and LP gas will decrease by 89 cents per kilogram.

Nedbank’s Senior Economist, Isaac Matshego, says it is unlikely that the levy will have a significant impact on local inflation.

“The increase in the fuel levy is unlikely to have a significant impact on local inflation, as the increase in fuel prices will probably be offset by lower global oil prices and the strength of the rand in the coming months. Overall, we expect the increase in the fuel levy to have an impact of less than half a percentage point on overall inflation and could actually be less than that, so we do not really expect a significant direct impact from the increase in the fuel levy.”

--SABC/ChannelAfrica--