Big Petrol Price Drop
The petrol price is expected to drop by a considerable amount in March, while the wholesale diesel price is predicted to remain the same after a huge fall during February.
Throughout February, the rand has traded at somewhat stronger levels of about R16 to the dollar, up from an average of around R16.35 to the dollar during January.
Over the last 10 business days, wholesale petrol has traded at considerably lower international dollar-prices, though diesel prices rose slightly, after dropping sharply in January.
If the present over-recovery for petrol endures until 25 February, the retail petrol price will drop by around 80 cents per litre.
Then again, if the rand declines again or international petrol prices rise, the fall won’t be as significant. However, it is highly unlikely the anticipated drop will turn around entirely to an ultimate increase.
The wholesale diesel price is presently at a critical point. If existing conditions endure, the price of wholesale diesel will drop by around a cent on 2 March, though this could easily change.
It is anticipated the finance minister will announce the yearly change in the fuel and Road Accident Fund (RAF) levy coming into effect on 6 April.
At present, we pay a fuel levy of R2.55 per litre on petrol and R2.40 for diesel. These fuel and RAF levies are fixed nominal amounts that are adjusted yearly on the first Wednesday of April.
Currently, the petrol price is about 20% more than it was in February 2015. But, if it falls by 80 cents in March, it will only be around 3% more than it was in March 2015.
The price of oil is still trading at about the $30 mark – even after a 5% overnight increase to $31.43.
On Friday morning, the rand was trading at R15.89 against the dollar, down from a low of R17.995 in December.
The inland petrol and diesel prices (per litre) are currently as follows:
R12.15 for 93 LRP
R12.43 for 95 LRP
R9.43 for 0.05% sulphur
R9.47 for 0.005% sulphur