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The latest fuel price data shows a significant drop in petrol and diesel prices.
Picture: iStock
There might be some good news for motorists ahead of the Easter break with a significant drop in the price of petrol.
According to the latest projections, petrol could come down by as much as R1 per litre.
This will be a welcome relief after the South African Reserve Bank put a pause on cutting interest rates after two months of reprieve.
The drop in the petrol price will alleviate some pressure on consumers who have to dig deeper into their pockets for electricity from 1 April.
The National Energy Regulator of South Africa in January approved a 12.7% electricity tariff increase for Eskom.
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According to data from the Central Energy Fund, the petrol price cuts are primarily driven by lower international oil prices and a relatively stable rand.
A key factor in the decline is Opec+ members’ decision to ramp up oil production ahead of schedule.
The group is set to add 2.2 million barrels a day to global supply from April, a move initially planned for later in the year. The unexpected increase is seen as an attempt to protect market share amid softening demand.
The rand’s relative strength against the US dollar has also contributed to the expected fuel price reduction.
While the lower fuel prices will bring short-term relief to consumers, uncertainty remains. Oil price fluctuations will depend on global trade policies, potential retaliatory tariffs and broader economic conditions, according to Moneyweb.
In January and February, the petrol price increased by around 12 cents and 82 cents per litre, respectively.
However, earlier this month, petrol prices dropped by 7c per litre, while wholesale diesel prices decreased by between 17.5c and 23.5c per litre, to the relief of cash-strapped motorists.
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