Mid-month fuel price data indicates that petrol prices could see another increase next month while diesel prices could be in for a welcome drop.
These expected changes, as published by the Central Energy Fund (CEF), are based on the performance of the rand/US dollar exchange rate and international oil prices from the first to the 13th of March.
During this period, the rand gained purchasing power against the dollar, swapping hands at an average of R19.25/dollar on the first and dropping to R18.68/dollar by the 13th.
Consequently, it contributed to an over-recovery in local fuel costs of between 11-12c/litre, depending on the grade.
Increasing international oil prices, meanwhile, had a mixed impact on next month’s expected fuel price adjustments.
Over the past two weeks, the cost of Brent Crude oil rose from $83.55/barrel to over $85.30/barrel, in turn contributing to an under-recovery of between 22-24c/litre for petrol, but an over-recovery of 16-20c/litre for diesel.
With these elements included, fuel prices in South Africa on the first Wednesday of April are expected to be adjusted as follows, according to the CEF:
- Petrol 93 – Increase of 11c a litre
- Petrol 95 – Increase of 13c a litre
- Diesel 0.05% – Decrease of 28c a litre
- Diesel 0.005% – Decrease of 32c a litre