Lower international oil prices have improved the fuel price outlook for March, however the relief is likely to be minimal.
Late-month data from the Central Energy Fund points to minor movements in the price of petrol, and a slight decrease for diesel.
As it stands, 95 Unleaded petrol is looking set for a decrease of around two cents, while 93 Unleaded could see an increase of 11 cents.
Diesel on the other hand, is poised for price decreases of between 11 cents (500ppm) and 17 cents (50ppm).
This outlook could still improve in the coming days, with large over-recoveries currently developing on all fuel types. The official fuel prices for March will be announced early next week before coming into effect on Wednesday, March 5.
95 Unleaded petrol currently costs R21.62 at the coast and R22.45 inland, while 93 Unleaded retails for R22.16. This follows an 82 cent increase at the beginning of February, while diesel rose by between R1.01 and R1.05.
This followed price hikes of between 12 cents and 19 cents in January, 17 cents in December and 25 cents in November.
Lower oil prices
The price of Brent Crude oil hit almost three-month lows this week, dipping below the $72 (R1,329) mark on February 26. However, oil traded at higher levels earlier in the month, peaking at $77 on February 11, limiting the relief at the pumps next month.
Oil prices are lower this week due to an unexpected build in US fuel stockpiles due to lower demand, and the expectation of a peace deal between Russia and Ukraine, which could see sanctions on Russian oil lifted.
“If sanctions are lifted, additional Russian oil could enter the market, exerting downward pressure on prices in the short term,” said Terence Hove, Terence Hove Financial Markets Strategist Consultant to Exness .
“The market could also remain exposed over the longer term to US crude production policies, potential trade tensions and OPEC policy changes. The resulting higher production and weaker global growth could drive market prices to the downside,” Hove added.