Cape Town – Petrol prices could drop by as much as 38 cents a litre in March, according to the Automobile Association (AA).
Commenting on unaudited month-end fuel data released by the Central Energy Fund, the AA said on Monday that South Africans will likely benefit from a stable exchange rate and lower international fuel prices.
The AA expects the price of diesel to go down by 47c and illuminating paraffin by 26c.
“The rand was trading at around R12.00 to the US dollar at the start of February and has gradually strengthened to an average level approaching R11.80 for the month,” the AA said.
“Over the same period, international fuel prices dropped sharply. Although they have subsequently climbed, the increase has been moderate enough for South African fuel users to see some benefit.”
If the rand maintains its current stable trend against the dollar, the AA expects international petroleum prices to be the main driver of fuel price changes in the near future.
The per litre price of all grades of petrol went down by 30c at the beginning of February, mainly due to the performance of the rand against the dollar. The price of both grades of diesel declined by 17c/litre in February, while illuminating paraffin (wholesale) and illuminating paraffin (Single Maximum National Retail price) went down by 19c and 26c respectively and the maximum retail price of LP gas decreased by 23c a kilogram.
Last week in Budget 2018 Finance Minister Malusi Gigaba announced that South Africans will be paying 52c/litre more for fuel from April 4. This increase would include a 22c/litre increase in the general fuel levy, and a 30c/litre rise in the Road Accident Fund (RAF) levy. It will apply to both petrol and diesel.
The general fuel levy will now be R3.37/litre of 93 octane petrol, up from R3.15 last year. The RAF levy will be R1.93/litre.