The main contributing factor to the fuel price decrease is the continual drop in crude oil prices, which have fallen to about $80 per barrel.
Lower petrol prices have also helped to keep inflation under control and this is the third consecutive month that inflation is back to within the 3-6% target band set by the Reserve Bank.
Lower daily fuel costs will increase consumers’ disposable income and thus help to make purchasing a home more affordable. Increased demand for property will, at the very least, help to support current prices.
Should lower petrol prices endure, it will not only make it easier to balance the monthly budget but also increase the attraction of areas that are further away from employment districts or amenities like schools and shopping centres, relative to closer suburbs because the commuting costs will be less significant.
David de Waal (CA(SA))
Steeple – Low commission estate agents
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