Motorists can expect decreases in fuel prices in March 2016.
The weakening Rand has caused fuel price havoc in South Africa this year, but ongoing oil price weakness and marginal improvements in the Rand/US Dollar exchange rate in February will see reductions in fuel prices for March 2016.
Commenting on unaudited mid-month data released by the Central Energy Fund, the Automobile Association of South Africa (AA) said, “The Rand has recouped some of its losses against the dollar and traded in a fairly narrow band since the end of January. This is allowing South Africans to benefit from lower international petroleum prices and provides some cushioning against any upward movement.”
Current indicators show that a petrol price decrease of between 56 and 59 cents per litre is on the cards for March with about 11 cents attributable to the gains in the Rand. International diesel prices have risen slightly in February but the exchange rate has offset the gain somewhat. Diesel prices are predicted to rise by 7 cents per litre in March as opposed to 17 cents per litre had the Rand remained weak.
The AA also commented that: “It would benefit the economy considerably if the current environment of low petroleum prices and a flatter exchange rate were to continue.”
Motorists will be happy about the reduction in fuel prices but rising new car prices in 2016 and the recent interest rate hike will continue to put consumers under pressure.