Joy for motorists as fuel prices go down

FUEL prices have dropped just in time of the festive season when the demand is high, a development which gives motorists who have in the past bemoaned unreasonable fuel prices a sigh of relief.

Some local fuel retailers have reduced diesel and petrol prices in line with the falling global oil prices. In a survey yesterday,

According to a survey by Herald Sakunda Energy and Redan Petroleum reduced fuel prices on Wednesday by at least three cents per litre.

Diesel, which used to cost US$1,43 per litre, is now selling at US$1,40, while petrol now costs US$1,51 per litre from US$1,54.

Sources at Sakunda Energy and Redan Petroleum said they reduced the prices in line with trends on the global market.

Consumers who bear the burden of high fuel prices through increased cost of transport yesterday welcomed the development.

A number of motorists said the reduction in the fuel price should also reflect in the prices of other commodities.

Business magazine, Bloomberg, recently reported that crude oil prices had fallen to a four-year low due to increased output from the United States and a decline in global demand.

Data from Bloomberg indicates that the value of West Texas Intermediate crude, which is used to benchmark global prices, dropped to US$68,56 per barrel in Monday's trading on the New York Mercantile Exchange.

The International Energy Agency predicts that the current decline in global oil prices will slide into 2015 due to increased production from the US.

Other reports predict that the drop in crude prices could go to as low as US$40 per barrel.