{"id":818580,"date":"2025-03-28T10:21:00","date_gmt":"2025-03-28T08:21:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=818580"},"modified":"2025-03-28T10:21:06","modified_gmt":"2025-03-28T08:21:06","slug":"big-petrol-price-cut-coming-next-week-3","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/818580\/big-petrol-price-cut-coming-next-week-3\/","title":{"rendered":"Big petrol price cut coming next week"},"content":{"rendered":"\n<p>South African motorists can look forward to a sizeable cut to petrol and diesel prices next week, with data showing that over-recoveries have stuck it out to the end of the month.<\/p>\n\n\n\n<p>Month-end data from the Central Energy Fund (CEF) is showing a significant over-recovery in both petrol and diesel prices.<\/p>\n\n\n\n<p>Petrol prices should be coming down by between 64 and 78 cents per litre, while diesel should be cut by around 90 cents per litre.<\/p>\n\n\n\n<p>This is before factoring in any tax changes that will kick into effect from 1 April.<\/p>\n\n\n\n<p>While Finance Minsiter Enoch Godongwana froze the general fuel and Road Accident Fund levies for 2025, the carbon fuel levy will be increasing by 3 cents per litre.<\/p>\n\n\n\n<p>This will ultimately counter the price cuts very slightly.<\/p>\n\n\n\n<p>Here are the projected changes based on month-end data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Petrol 93:<\/strong>\u00a0<mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">decrease<\/mark>\u00a0<\/mark>of 64 cents per litre<\/li>\n\n\n\n<li><strong>Petrol 95:\u00a0<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">decrease<\/mark>\u00a0<\/mark>of 78 cents per litre<\/li>\n\n\n\n<li><strong>Diesel 0.05% (wholesale):<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">\u00a0<mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">decrease<\/mark><\/mark>\u00a0of 90 cents per litre<\/li>\n\n\n\n<li><strong>Diesel 0.005% (wholesale):<\/strong>\u00a0<mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">decrease<\/mark><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">\u00a0<\/mark>of 93 cents per litre<\/li>\n\n\n\n<li><strong>Illuminating paraffin:<\/strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">\u00a0<mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">decrease<\/mark><\/mark>\u00a0of 84 cents per litre<\/li>\n<\/ul>\n\n\n\n<p>The recoveries aren&#8217;t that different from projections earlier in the month, meaning the positive market conditions regarding oil prices and the rand\/dollar exchange rate have remained fairly stable.<\/p>\n\n\n\n<p>Movements in oil prices have been the biggest driver of the over-recoveries, with crude oil prices remaining weaker overall.<\/p>\n\n\n\n<p>While oil prices have started climbing\u2014now trading around $73 a barrel, up from under $70 a barrel earlier in the month\u2014they are still lower relatively to last month.<\/p>\n\n\n\n<p> Oil prices have been under pressure due to wider global market uncertainty as traders wait and see what will happen with US president Donald Trump&#8217;s tariff and trade war.<\/p>\n\n\n\n<p>Bloomberg analysis of the market shows that oil has trended higher as investors weigh the disruption to supply caused by President Donald Trump\u2019s sanctions and levies.<\/p>\n\n\n\n<p>Traders are snapping up bullish options to hedge against price spikes, it said.<\/p>\n\n\n\n<p>The potential hit to crude flows as a result of the US has been tempered by concerns over softer demand and rising supply, with top trading houses bearish on crude prices over the rest of the year. <\/p>\n\n\n\n<p>Next month, oil-producing nations are scheduled to start reviving idled production. This is the first in a series of planned hikes, which will boost supply and likely lower prices.<\/p>\n\n\n\n<p>As a result, oil prices have been low for March, benefitting local recoveries and aiding in some good news for motorists in South Africa next week.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is shaking up the rand<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Donald-Trump.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"553\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Donald-Trump-1024x553.jpg\" alt=\"\" class=\"wp-image-798725\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Donald-Trump-1024x553.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Donald-Trump-300x162.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Donald-Trump-768x415.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/11\/Donald-Trump.jpg 1250w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">US President Donald Trump&#8217;s tariff war is keeping global markets on edge, never knowing quite what to expect.<\/figcaption><\/figure>\n\n\n\n<p>The other side of the equation\u2014the rand\/dollar exchange rate\u2014has also been good for motorists.<\/p>\n\n\n\n<p>While the rand is by no means strong\u2014trading around R18.20\/$ and still quite a way off from its fair value\u2014it has shrugged off many local troubles like the return of load shedding and uncertainty around the 2025 budget.<\/p>\n\n\n\n<p>Instead, it has been at the whims of the global market along with other emerging market currencies.<\/p>\n\n\n\n<p>According to Investec chief economist Annabel Bishop, the global financial market focus remains on the United States, with the rand mainly impacted by global events.<\/p>\n\n\n\n<p>The United States is &#8220;severely influencing&#8221; sentiment on high uncertainty around Trump&#8217;s tariff regime, she said, as the situation remains fluid on US protectionism.<\/p>\n\n\n\n<p>Bishop said that volatility around the Trump trade war will likely keep markets in risk-off mode, which is bad news for the rand.<\/p>\n\n\n\n<p>However, if things end up being not as bad as expected, this could lead to risk-taking, which would boost the local unit.<\/p>\n\n\n\n<p>These uncertainties are being tempered by at least more stability on interest rates, with the Reserve Bank following the US Fed in holding rates last week.<\/p>\n\n\n\n<p>Holding rates keeps the differential between the two countries firm\u2014a positive for the rand\u2014while lower inflation locally means there is still room to cut later.<\/p>\n\n\n\n<p>However, Bishop said that much will depend on tariff announcements in the US, both in April and over the Trump administration\u2019s full term.<\/p>\n\n\n\n<p>&#8220;The risks that heavy tariffs in the US hold for global and US economic growth, as well as inflation\u2014and so interest rate outcomes\u2014affect investor sentiment markedly,&#8221; she said.<\/p>\n\n\n\n<p>This feeds into emerging markets like South Africa, and their economies and currencies.<\/p>\n\n\n\n<p>As it stands, Bishop said the rand is expected to average closer to R18.00\/USD in the second quarter of the year, lower than the first quarter&#8217;s R18.50\/USD outcome.<\/p>\n\n\n\n<p>The rand could strengthen later in the year but will also experience volatility, she said.<\/p>\n\n\n\n<p>&#8220;The materialisation of US interest cuts this year is key for the rand\u2019s outlook,&#8221; she said.<\/p>\n\n\n\n<p>For now, the rand&#8217;s relative stability is contributing positively to fuel price recoveries, adding to the likely fuel price cuts coming next week.<\/p>\n\n\n\n<p>The Department of Petroleum and Mineral Resources will publish the official price changes sometime before the come into effect from Wedensday, 2 April 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South African motorists can expect some relief at the pumps next week, despite some minor tax hikes kicking in from 1 April.<\/p>\n","protected":false},"author":10,"featured_media":714644,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[9068,22148,2923],"class_list":["post-818580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-central-energy-fund","tag-diesel-prices","tag-petrol-prices"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/818580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=818580"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/818580\/revisions"}],"predecessor-version":[{"id":818601,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/818580\/revisions\/818601"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/714644"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=818580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=818580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=818580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}