The New Age: Oil price bonanza for SA

South Africa stands to gain a R60bn windfall from the plummeting oil price, which will also help reduce the country’s widening current account deficit, experts say.

Since mid-June, crude oil prices have fallen by more than 30%, leading to a series of petrol price decreases.

Economist Mike Schüssler said as oil was by far the country’s biggest import, the huge price drop would significantly boost a number of sectors of the economy, especially transport.

Schüssler told The New Age yesterday the price cuts in the past 10 months had saved the country between R60bn and R70bn. “The other good news is that South Africa’s current account deficit is being reduced from 5.6% of GDP.”
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