Here is the expected petrol price for March 2016
South African motorists will breathe a sigh of relief following news that the petrol price is projected to fall by as much as 59 cents per litre in March, according to the Automobile Association (AA).
This would take the petrol price from the R12.15 (93 LRP) and R12.43 (95 LRP) to around R11.56 and R11.84, respectively.
The AA said that ongoing oil price weakness has been bolstered by a strengthening in the Rand/US dollar exchange rate.
“The Rand has recouped some of its losses against the dollar and traded in a fairly narrow band since the end of January,” the AA said. “This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement.”
The AA noted that the current indicators show a decrease of between 56 and 59 cents a litre.
It said that although the international price of diesel climbed slightly in the first half of February, the exchange rate offset some of diesel’s gains – without the stronger exchange rate, the increase would have been 17 cents a litre instead of the seven cents a litre currently predicted.
On Friday, 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 price of oil continues to trade at around the $31 mark on Tuesday, while the rand was priced at R15,76 against the dollar in morning trade, 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
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.
More on the petrol price
Huge drop in SA petrol price expected in March
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