A report by BusinessTech says the price of petrol is expected to drop by a significant 80 cents towards March while that of diesel is anticipated to remain stable.
According to Paul Joubert, senior researcher at Solidarity Research Institute, the International dollar-prices of wholesale petrol have been trading significantly lower over the past nine business days than in January, but diesel has been slightly more expensive after falling sharply in January and if this continues til 25 February, the retail price of petrol will fall by 80 cents per litre in March.
He added that the wholesale price of diesel is currently on a knife-edge. If current conditions persist, wholesale diesel prices will fall by about a cent by 2nd March; but that if the rand weakens again, or international petroleum prices increase, the drop will be lower.
“There isn’t much chance of the expected decrease swinging around totally to an eventual increase, though” he said.
Speaking further, Joubert said that the finance minister is likely to announce the annual change in the amount of the fuel levy and Road Accident Fund levy at the end of the month to be implemented on 6 April.
The fuel levy is currently R2.55 per litre for petrol and R2.40 on diesel. The Road Accident Fund levy is R1.54 per litre on both petrol and diesel. The levies are fixed nominal amounts per litre and only changes annually during the first Wednesday of April.
The price of petrol is approximately 20% higher than it was in February 2015, “but should it fall by 82 cents in March, it will only be about 3% higher than it was in March 2015,” he analyzed.
Solidarity Research had in October last year forecast a decrease of about 20 cents in the petrol price in November, with diesel seen about 10 cents cheaper.
And in December, the Automobile Association AA advised motorists to moderate their expectations of a fuel price drop in January following the weakness of the Rand.