Petrol, diesel set to drop in March

The revised fuel prices are set to take effect on Wednesday.

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The AA’s Layton Beard says the drop is mostly due to the lower international oil price.

“One of the biggest reasons why the Automobile Association is predicting fuel decrease going into March is that the international petroleum prices this week suffered one of their steepest plunges in recent years as coronavirus fears impact on global activity.

“The rand weakened considerably against US dollars in the last couple of days. Luckily for South African fuel users that has been offset by these plunges to the international petroleum prices and because of that, we are predicting at this stage a decrease between 9 and 19 cents a litre for petrol, 55 cents a litre for diesel, and 68 cents for illuminating paraffin.”

Beard warns that the weaker rand could see prices going up again in April.

“The decline is going to be extremely welcome news especially considering that going into April, we know that 25 cents is going to be added on the fuel price even before any fuel price fluctuation has been calculated in."

“The worry that we have at the moment obviously remains the rand US dollar exchange rate, the rand has lost considerable ground against the US dollar and if this trend continues, then obviously the picture for fuel going into April may look a lot different to that in March. At this stage, we would advise people not to expect any further fuel price drops going into the rest of the year. It will depend on what happens with the value of the rand against the green bag.”