Motorists might experience a certain degree of relief at the pumps at the beginning of March, with a decrease in fuel prices on the cards.
This follows mid-month data from the Central Energy Fund, where petrol shows a drop of between 14 and 25 cents a litre. Diesel reflects a drop of approximately 55 cents, while illuminating paraffin shows a drop of 66 cents.
The Automobile Association adds that steady declines in the international oil prices have gained an upper hand over a weakening rand, which in turn sets the stage for a reduction in the fuel prices at the end of the month.
While the data shows a decline in the international oil prices over the past two weeks, the rand has also weakened substantially over the past two weeks, with the moving average against the US dollar slipping from over R14.30 to R14.85.
In fact, Layton Beard, the spokesperson for the AA, explains that if the rand continues to weaken and if the oil cannot hold its ground, then the decrease in fuel prices may be less than anticipated.
