Following this month’s hefty fuel price hikes, there is not much relief on the horizon for those with petrol powered vehicles, but a diesel price decrease could be on the cards.
Mid-month data released by the Central Energy Fund (CEF) is pointing to a price decrease of up to 36 cents per litre for 50ppm diesel, and if current trends continue until the end of March a decrease of more than 50 cents is possible.
On the petrol front we are currently seeing under-recoveries of between eight and 10 cents, which would normally point towards a small decrease, but with the latest daily data being slightly in the green, a small decrease is still possible if international oil prices stabilise.
International oil prices hit a four-month high on Wednesday this week on fears of supply disruptions following Ukrainian attacks on Russian refineries and a bigger-than expected drop in US fuel stocks, Reuters reported.
Brent Crude oil was trading at $85 per barrel on March 16, above the February average of $83.48. However the rand was trading stronger at R18.78 to the US Dollar, down from its average of R19.01 last month.
Petrol prices increased by R1.21 per litre at the beginning of March, pushing the cost of a litre of 95 Unleaded up to R23.73 at the coast and R24.45 inland, where the cheaper 93 ULP currently retails at R24.13.
Diesel increased by between R1.05 (500ppm) and R1.19 (50ppm).
IOL Motoring