South Africa gasoline price drops to four-year low as oil falls and rand strengthens

The ministry said 95-octane gasoline in Gauteng will fall about 3% to 20.75 rand per liter from Jan. 7 after global crude prices eased and the rand strengthened more than 3% in December.

South Africa's retail gasoline price is set to fall to its lowest level in nearly four years after global crude prices eased and the rand strengthened. The ministry of mineral and petroleum resources said the reduction was announced in an emailed statement and will take effect from Jan. 7. Officials also reported a notable decline in diesel wholesale prices. Fuel prices are closely watched because they influence consumer inflation and the cost of goods. Key facts: - 95-octane gasoline in Gauteng will decrease by about 3% to 20.75 rand per liter from Jan. 7, according to the ministry. - The wholesale price of diesel will decline by at least 7%, the ministry said. - The rand gained more than 3% against the dollar in December, which lowers the local cost of imported crude. - Fuel directly accounts for almost 4% of South Africa's consumer inflation basket and affects the price of many goods. - Annual inflation slowed to 3.5% in November, which has raised expectations of an interest-rate cut later this month. Summary: The fall in fuel prices may reduce measured inflation and ease some cost pressures across the economy. An interest-rate decision by monetary authorities is scheduled later this month. Undetermined at this time.