Fuel prices are set to drop in March as South Africans benefit from a stable exchange rate and lower international fuel prices…

This is according to the Automobile Association (AA), which was commenting on unaudited month-end fuel data released by the Central Energy Fund.

“The Rand was trading at around R12.00 to the US dollar at the start of February, and has gradually strengthened to an average level approaching R11.80 for the month,” the AA says.

“Over the same period, international fuel prices dropped sharply. Although they have subsequently climbed, the increase has been moderate enough for South African fuel users to see some benefit.”

“We expect petrol to drop by up to 38 cents a litre, diesel by 47 cents and illuminating paraffin by 26 cents,” the Association notes.

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It adds that if the Rand maintains its current stable trend against the US dollar, the main driver of fuel price changes in the near future will be international petroleum prices.

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