Fuel price trends are showing mixed results for motorists as March approaches. Petrol prices are expected to rise again, while diesel prices are set for a reduction.
Data from the third week of February shows notable improvements compared to earlier in the month, when both petrol and diesel prices experienced significant under-recoveries.
In February, fuel prices increased by 82 cents per litre for both grades of unleaded petrol and between R1.01 and R1.05 per litre for diesel. Currently, motorists are paying R22.41 per litre for 95 Unleaded petrol and R22.16 for Unleaded 93.
The latest figures from the Central Energy Fund (CEF) show a decrease in the under-recovery for petrol. While petrol prices are still expected to rise in March, the under-recovery has dropped from about 60 cents per litre at the start of February to between 5 and 18 cents, depending on the grade.
Diesel users, however, have reason to celebrate. Price predictions have shifted from an expected increase at the beginning of the month to a reduction of between 4 and 11 cents per litre.
Fuel Price Changes Expected in March:
Petrol 93: Increase of 18 cents per litre
Petrol 95: Increase of 5 cents per litre
Diesel 0.05% (wholesale): Decrease of 4 cents per litre
Diesel 0.005% (wholesale): Decrease of 11 cents per litre
Illuminating paraffin: Increase of 7 cents per litre
Factors Affecting Fuel Prices: Rand/Dollar and Oil Prices
Fuel prices are mainly influenced by the price of oil and the rand/dollar exchange rate. February’s fuel recovery was slowed by a stronger rand and stable international oil prices.
Oil prices remain a key factor behind the under-recovery in petrol prices. Despite dropping below $75 a barrel this month, concerns over supply and a weaker US dollar have helped keep prices stable.
With just one week left in February, there is hope that the current trend will continue, possibly pushing 95 Unleaded petrol into over-recovery.
Who Determines Fuel Prices?
The Department of Petroleum and Mineral Resources (DMRE) has emphasized that the daily CEF snapshots are not predictive. They do not account for potential changes like slate levy adjustments or retail margin changes, which can impact the final fuel price determination.
Official fuel price adjustments will take effect on Wednesday, 5 March.
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