While this month’s fuel price decreases of seven cents for petrol and up to 32 cents for diesel hardly touched sides after four months of price increases, April could bring significant relief.
The latest data from the Central Energy Fund (CEF), released on March 12, shows that petrol prices are likely to recede by between 85 cents (93 Unleaded) and 98 cents (95 Unleaded), while diesel is looking set for decreases of between 86 cents and 87 cents.
With the daily data inching further into the green, the fuel price decreases could even surpass the R1 mark if current trends persist, but all of this optimism does come with a caveat as much can still transpire on the fuel price front during the remainder of the month.
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Nonetheless, a R1 petrol price decrease will bring the price of 95 Unleaded down to around R20.55 at the coast and R22.34 inland, while 93 Unleaded could reduce to around R21.09.
Oil prices fall as tariff war looms
This predicted relief for motorists comes as a result of lower international oil prices, which dipped below the $70 per barrel mark this week (R1,286) for the first time since September 2024, also marking a significant decline from the mid-January highs of $81.
According to Milad Azar, Market Analyst at XTB, oil prices remain under pressure due to concerns over a global economic slowdown, aggravated by US tariffs on major trading partners.
“These protectionist measures have raised fears of reduced energy demand, compounded by market uncertainty and potential recession risks,” Azar said.
Opec’s plans to increase production in April are also weighing on prices, however the global oil cartel could reverse those plans if significant imbalances in the market occur.
IOL