Motorists in South Africa will feel some relief in April as global oil price track lower.
Also read: Petrol and diesel prices set to increase tomorrow
Business Day reports that the projected hike of around eight cents per litre is lower than at the start of the month when a 56 cents per litre hike was predicted.
Local fuel prices are linked to the rand/dollar exchange rate and the price of oil.
For much of March, the rand has been the major thorn in the side of petrol and diesel, accounting for an under-recovery in fuel prices of around 40 cents a litre.
At one stage, oil prices were contributing to an under-recovery for petrol (not diesel) in the month but the fallout from the collapse of big banks in the US and Europe had a major impact on the markets.
The price changes are now indicating a 30 and 80 cents per litre over-recovery in local prices for petrol and diesel. An over-recovery which could track higher if oil prices continue to weaken.
Both the oil price and exchange rate are being impacted by market volatility, and with two weeks to go before the new month, there is plenty of time for conditions to change. For now, however, the data shows prices trending lower for April.
Central Energy Fund’s mid-month data revealed a 25 cents per litre increase in petrol, a decrease of 22 cents per litre in diesel and a decrease of 68 cents in paraffin.
At the very least, motorists can be thankful that no fuel tax hikes are coming in the new month to add to any potential woes.
Also read:
Possible price hikes on petrol and relief in diesel prices this April
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