South Africa is today set to reduce fuel prices due to falling prices of oil on the international market by an average of 5.4 per cent, the South African Department of Energy has announced.
The reduction has been attributed to the supply of crude oil outstripping demand during the current fuel price review period (27 March 2013 to 25 April 2013).
According to a report obtained by the Daily Nation the other reason has been due to Sslower than expected economic growth in China and the USA, the two world’s biggest economies.
The continued economic weakness in the Eurozone as well as the slowdown in fuel consumption in Japan has added to the weaker demand.
The report also talks about decrease in the price of international petroleum products which decreased drastically due to weaker than expected demand for petrol in the US.