The price of fuel is expected to drop at the beginning of March, according to the Automobile Association’s price outlook for the month.
“Petrol is currently showing a drop of between 14 and 25 cents a litre, diesel around 55 cents, and illuminating paraffin 66 cents,” the AA said.
It said the fall was driven by steady declines in international oil prices.
“In the case of illuminating paraffin, the landed price of the fuel dropped by over 90 cents in two weeks. Similar positive effects have been noted on the other main liquid fuels.”
The expected changes in price per litre are listed below:
- Petrol decrease between 14c and 25c per litre.
- Diesel decrease around 55c per litre.
- Illuminating paraffin decrease of 66c per litre.
Rand weakens price gains
The drops could have been more significant, had it not been for the Rand weakening.
The currency’s moving average against the dollar has slipped from R14.30 to R14.85 during the period.
“This reflects underlying weak economic sentiment in South Africa, and we share the view of many commentators that further weakening is likely,” the Association stated.
It added that trends from now to month-end would determine if fuel prices are able to hold onto the predicted gains.
“If the Rand continues to slip, we might see some reversal of the trend,” the AA concluded.