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The Automobile Association said motorists could expect to see significant decreases in the price of diesel and illuminating paraffin going into April.
The AA said unaudited data from the Central Energy Fund was also showing a nominal decrease in the prices of all grades of petrol.
The Association said this was particularly good news for consumers considering that mid-month data indicated possible increases in petrol prices.
AA spokesperson, Layton Beard, said 95ULP petrol was set to decrease by 1.5 cents a litre and 93ULP by 4 cents a litre, while diesel was showing “more notable decreases of around 78 cents a litre and illuminating paraffin is set to fall by R1.39 cents a litre.”
“The main driver behind the decreases is lower international product prices, while the higher average Rand/US Dollar exchange rate is counter-balancing these gains. The weaker Rand is eroding around 40c/l of the decreases meaning the decreases could have been more significant had the Rand been stronger throughout March,” he noted.
However, Beard said that the data was only reflecting the Basic Fuel Price and that other factors such as zone differential costs (the cost of transporting fuel from coastal to inland areas), and adjustments to the Slate Levy, may still be made by the Department of Mineral Resources and Energy (DMRE).
“If these are made, they will impact fuel prices, but this will only be known once the official adjustment is announced,” he said.
Beard said the good news, though, was that even if adjustments were made to Zone differential costs and the Slate Levy, petrol prices were not likely to increase significantly and diesel and illuminating paraffin prices are still set to come down.
“The diesel decrease is particularly important because it is a major input cost in the manufacturing, mining, and agricultural sectors, and a decrease to this fuel could prevent immediate rising costs in goods and services,” he said.
The AA further noted that the General Fuel Levy and the Road Accident Fund levy would not be increasing this year.
The fuel price adjustments will come into effect next Wednesday.
