South African motorists can expect some modest relief at the pumps in March, with diesel prices expected to decrease slightly, while petrol prices are likely to see minimal movement.
Latest data from the Central Energy Fund (CEF) suggests that 95 Unleaded petrol may decrease by around 2 cents per litre, while 93 Unleaded petrol could increase by 11 cents per litre.
Diesel users, however, will benefit from small reductions, with 500ppm diesel projected to drop by 11 cents per litre, and 50ppm diesel expected to decrease by 17 cents per litre.
While these adjustments are relatively minor, they could improve in the coming days as large over-recoveries continue to develop across all fuel types. The Department of Mineral Resources and Energy will confirm the official fuel prices early next week, with adjustments set to take effect on Wednesday, March 5.
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Brent Crude Oil Prices Hit Three-Month Low
The dip in fuel prices is largely driven by lower international oil prices. This week, Brent Crude oil dropped to its lowest level in nearly three months, dipping below $72 per barrel on February 26.
A key factor behind the price drop is rising fuel stockpiles in the US, signalling weaker demand. Additionally, speculation about a potential peace deal between Russia and Ukraine has raised the possibility of sanctions on Russian oil being lifted, which could increase global supply and push prices down further.
Financial market strategist Terence Hove noted that while additional Russian oil could drive prices lower in the short term, other factors like US crude production policies, global trade tensions, and OPEC decisions could still influence long-term trends.
Despite the recent price cuts, fuel remains significantly higher than it was a few months ago. Petrol prices increased by 82 cents in February, following smaller hikes in January, December, and November. Diesel also saw significant increases in the past two months before this expected drop.
While the fuel price relief in March is not as big as many hoped, a continued decline in oil prices could result in further reductions in the coming months.
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