According to the most recent Central Energy Fund data, the Automobile Association (AA) estimates that the price of diesel may be reduced by 78 cents per litre next week, while the price of petrol should remain largely unchanged.
The data shows that 95 unleaded petrol may drop by 1.5 cents per litre and 93 unleaded petrol by 4 cents. The price of illuminating paraffin is expected to fall by R1.39 per litre.
Also read: Possible price hikes on petrol and relief in diesel prices this April
As oil is priced in dollars, fuel prices, which will be adjusted on Wednesday, April 5, are heavily influenced by the oil price as well as the rand.
According to News24, the AA noted that the main cause of the decreases is lower international product prices, while the higher average rand/US dollar exchange rate offsets these gains.
‘The weaker rand is eroding around 40 c/l of the decreases, meaning the decreases could have been more significant had the rand been stronger throughout March,’ it said.
The association warned that the data only reflects the basic fuel price and that the Department of Mineral Resources and Energy may still make adjustments to the slate levy. These changes will have an impact on prices, but they will not be announced until next week.
While the Brent oil price has dropped from more than $84 per barrel to around $80, the rand has taken a significant hit this month. It has been steady in recent days, with a significant boost following a larger-than-expected rate hike on Thursday.
Petrol prices increased by R1.27 per litre at the beginning of March, while diesel prices increased by 30 to 32 cents per litre.
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