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Huge drop in SA petrol price expected in March

Huge drop in SA petrol price expected in March

The price of petrol is projected to fall by a significant amount in March, while the wholesale price of diesel is anticipated to remain stable following a big drop in February.

Paul Joubert, senior researcher at Solidarity Research Institute said that the rand has, on average, been trading at slightly stronger levels of around R16 to the dollar in February – from an average of about R16.35 in January.

“International dollar-prices of wholesale petrol have been trading significantly lower over the past 10 business days than in January, but diesel has been slightly more expensive, after falling sharply in January,” Joubert said.

“If the current over-recovery for petrol persists until 25 February, the retail price of petrol will fall by about 80 cents per litre,” he said.

The researcher stressed 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.”

Joubert said 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 on 2 March, “but this can easily change”.

Solidarity said that at the end of the month, the finance minister is likely to announce the annual change in the amount of the fuel levy and Road Accident Fund levy to be implemented on 6 April.

Currently, the fuel levy is 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.

These levies are fixed nominal amounts per litre and only change annually on the first Wednesday of April.

The price of petrol is approximately 20% higher than it was in February 2015, “but should it fall by  about 80 cents in March, it will only be about 3% higher than it was in March 2015,” Joubert said.

The price of oil continues to trade at around the $30 mark – despite a 5% rise overnight to $31.43.

The rand was priced at R15.89 against the dollar in morning trade on Friday, down from a worst level of R17.995 in December.

Here are the current inland prices for petrol and diesel:

  • 93 LRP – R12.15
  • 95 LRP – R12.43
  • Diesel 0.05% Sulphur – R9.43
  • Diesel 0.005% Sulphur – R9.47

More on the petrol price

What the SA petrol price could look like in 2020

Petrol price in South Africa: 2015 vs 2014

Gareth is the editor at BusinessTech. Gareth was previously the ICT Editor at BusinessLive/I-Net Bridge. Gareth holds a degree in Journalism from Rhodes University....
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  • Shreez

    So happy I drive a diesel.

    • Konstabel Koekemoer

      Retail price for diesel is not regulated so you are likely paying a lot more than what is shown in the article.

      • Wollie Verstege

        In the area I live (CT: NSubs) 0.005% diesel is advertised between R9.82 and R10.52 per liter.
        Plus my diesel is far more economical, get on average 12k/l in town and easily 18 k/l on the open road – if i behave

      • Shreez

        That is very true – I saw a sign yesterday for R10.01 and wondered afterwards 🙂
        However, I get excellent mileage with it, the price of filling up is an added bonus.

  • Broscientist

    80 cent a litre a “huge” drop. Ag voetsek man.

    • OptimisticPessimist

      Pravin Gordan is just going to add this 80c to fuel tax come budget speech time.

  • Hennie

    I guess that the levies and taxes on the fuel price will be as exorbitant as in 2015… March price down 50-80c/l come April price up by R1,20c/l

  • S S

    Imagine what we would be paying on pre-94 Rand/$ levels?

  • death

    You need to redefine your version of the word “huge”
    I don’t get outta bed for less than R2 😛

  • SomeoneCT

    So for every rand I earn I pay Gov 40%, then when I use whats left of that to go buy fuel I pay another 50%…hmmm

    • peterq

      Then you need to take in all the other costs you have to pay because you have a corrupt government. Like private medical, schooling, security.

    • Blapartheid Zulu

      Don’t forget the other 14% VAT you pay. So… How much do we really get to save? No wonder no one is saving in this anc forsaken country

  • charles

    Cheap diesel in Nelspruit is R11.09… not sure if Nelspruit is considered inland, coastal or remote… if I ride 50km towards Jhb the price drops a lot… im sure Nelspruit has the highest fuel prices in SA.. btw have you compared R/oil price of Feb last year to R/oil price this Feb… we are being screwed… last year Feb … it was $60 compared to $30 now.. thats a 50% reduction in thr oil price… not sure of the R/$ exchange rate but im dead sure we are being screwed… the western world is reporting fuel prices at the cheapest in 3 years and here we are paying more… one more thing… when is the budget speech? All those levies will increase and we will maybe see R0.10 of the 80c… so no, none of this exciting news..

    • Jared

      Cheapest 50ppm diesel I can find in Jhb is just under R11 :/ Not sure where these “inland” places are…

      • LegallySpeaking

        It must be wholesale prices, taken from the AA website.

    • James Murphy

      The cheapest diesel I’ve seen in the Helderberg is in the Caltex garage on the road between Strand and Gordon’s Bay. 50ppm diesel is R9.50 there. The Caltex garage in Somerset West is R9.99

  • Prince Valiant

    Just imagine if we had a decent president and the rand was still in pre-Zuma territory what the petrol price would be like after this drop in the oil price.

  • Blapartheid Zulu

    When the gov decide to help boost the country economy by providing proper power, water, telecom, fuel and transport, the country will grow. But that’s impossible, because its apartheid fault

  • Roy Batty

    and food, water, electricity goes up! woohooo!

  • “Hey, look at this pretty trinket, now bend over more, and say my name…!”

  • BC Thirion

    Huge drop my haas.

  • Gary Fields

    Yeah right!

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