Motorists can expect further reductions in fuel prices in the coming months amid lower global oil prices. South Africans have endured a sharp increase in fuel prices since the start of the year before a 2.4 rand drop this month.
Although international oil prices remain below the $100 per barrel mark, the volatile rand remains a risk. The price of a liter of gasoline is still 3.77 rubles more expensive than in January.
With oil trading below US$100 a barrel and global demand expected to fall, fuel prices may fall, but petrol prices will not fall below 21 rand per litre.
Although it’s still early in the month, analysts say the price of petrol next month looks set to fall by around 1 rand to 50 rand, while diesel is likely to rise by around 65 cents a liter .
The Ministry of Mineral Resources and Energy says it buys 50% of its oil from African countries, Angola and Nigeria. But this does not lead to savings, because the Organization of the Petroleum Exporting Countries (OPEC) sets international prices.
Fuel prices are scheduled to drop on Wednesday:
The ministry says South Africa’s oil industry is not ready for deregulation due to a lack of transformation in the sector.
The costs that consumers pay for a liter of petrol include the cost of the fuel itself, delivery costs, insurance, local charges applicable in South Africa and industry margins.
