Petrol prices could drop by 56c in March
"This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement."
According to Automobile Association (AA), petrol price is expected to drop by at least 56 cents by end of this month.
“The Rand has recouped some of its losses against the dollar and traded in a fairly narrow band since the end of January,” the AA commented.
“This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement.”
Ongoing oil price weakness has been bolstered by a strengthening in the Rand / US dollar exchange rate.
This according to the Automobile Association (AA) which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF).
Although the international price of diesel climbed slightly in the first half of February, the exchange rate offset some of diesel’s gains – without the stronger exchange rate, the increase would have been 17 cents a litre instead of the seven cents a litre currently predicted.
Illuminating paraffin is set for an increase of ten cents a litre, which would have been 20 cents without the Rand’s recent gains.
“It would benefit the economy considerably if the current environment of low petroleum prices and a flatter exchange rate were to continue,” the Association concluded.
Read: Motorists may expect fuel price drop
