The Automobile Association says that fuel prices will drop in March as South Africans benefit from a stable exchange rate and lower international fuel prices.
“The rand was trading at around R12,00 to the dollar at the start of February, and has gradually strengthened to an average level approaching R11,80 for the month,” the AA said, commenting on unaudited month-end fuel data released by the Central Energy Fund.
“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.”
“We expect petrol to drop by up to 38 cents a litre, diesel by 47 cents and illuminating paraffin by 26 cents,” the Association noted.
The AA added that if the rand maintained its current stable trend against the dollar, the main driver of fuel price changes in the near future would be international petroleum prices.
Of course, the AA had earlier described the 52 cents per litre increase in the General Fuel and Road Accident Fund levies announced by Finance Minister Malusi Gigaba in the Budget Speech (and set to come into effect from the start of April) as cause for ?great concern?.
