It’s still early days, but the latest indications show that fuel prices could come down in April.
JANUARY’s fuel price decrease of more than R2 across the board came as a welcome relief to South African motorists, but it was short-lived as both February and March brought increases.
Thankfully, the fuel price equation has turned positive again, but due to the interplay of factors earlier in the month, motorists might not reap the full benefit in April.
It is too early to accurately predict April’s fuel prices, especially since there was a negative balance earlier in the month, and a positive balance prevailing at the moment.
As it stands, the latest daily snapshot released by the Central Energy Fund on March 15, predicts a 25 cent increase for petrol, but take that with a pinch of salt. The latest daily figures show an over-recovery to the tune of 30 cents for petrol, and if that works its way into the equation between now and month-end – assuming that oil prices remain weak – a small price decrease is certainly plausible.
But it’s those with diesel vehicles that stand to benefit the most. The month-average is pointing towards a decrease in the region of 20 cents, but if current conditions persist it will almost certainly be much bigger than that as the latest daily figures are around 85 cents in the green. Illuminating paraffin, meanwhile, is looking set for a decrease of more than 70 cents.
Following the R1.27 increase that took effect at the beginning of March, 95 Unleaded petrol currently costs R22.30 at the coast, while 93 Unleaded in the inland regions retails at R22.65.
Although the South African rand remains stubbornly weak, trading at R18.21 at the time of writing on March 15, international oil prices have fallen by around $5 in the past week, with Brent Crude currently listed at $77.45.
The US banking crisis is rattling commodity markets, and while that’s not good news for the economy overall, there could at least be a silver lining for motorists when it comes time to fill their tanks next month.
It is also fortunate that, during his Budget Speech in February, Finance Minister Enoch Godongwana left fuel taxes unchanged for the second year in a row. Fuel tax increases are usually implemented in April.
