South African motorists are poised for another round of relief at the fuel pumps in February, with current indicators pointing to price reductions for both petrol and diesel when the next adjustment takes effect next month.
Fuel prices have already retreated to their lowest levels in nearly four years following January’s cuts, and the latest figures suggest that downward momentum is set to continue into February.
Prices expected to fall further
According to unaudited data released by the Central Energy Fund (CEF) as of Tuesday 27 January, petrol prices are showing over-recoveries that could translate into cuts of around 66 cents per litre for 95 Unleaded and roughly 64 cents per litre for 93 Unleaded.
Diesel users are also likely to benefit, with wholesale prices for 500ppm diesel projected to decrease by about 60 cents per litre, while 50ppm diesel could fall by as much as 67 cents per litre, according to the CEF.
However, the Department of Mineral Resources told TygerBurger this morning (Wednesday 28 February) that, in terms of the Basic Fuel Price Working Rules, official and audited fuel prices are determined and announced exclusively by the department through an official statement.
These announcements are issued on the last Friday of each month or ahead of the first Wednesday of the new month.
What motorists could pay at the pumps
According to CEF, the price of 95 Unleaded petrol could drop to approximately R19.26 per litre at the coast and about R20.09 inland. Inland motorists using 93 Unleaded may see prices settle at around R20.00 per litre.
At present, coastal drivers are paying around R19.92 per litre for 95 Unleaded, while inland prices sit closer to R20.75 for 95 Unleaded and R20.64 for 93 Unleaded.
January cuts set the tone
Earlier this month, the Department of Mineral and Petroleum Resources announced substantial fuel price reductions for January, with petrol prices dropping by between 62 cents and 66 cents per litre. Diesel saw even steeper decreases, falling by R1.37 per litre for 500ppm and R1.50 per litre for 50ppm.
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Those cuts pushed local fuel prices to their lowest point since February 2022, offering much-needed relief to households and businesses grappling with high transport costs.
Rand strength and oil prices drive relief
The anticipated February decreases are largely being driven by favourable international conditions, the CEF said.
The rand has strengthened significantly against the US dollar, trading at its strongest level in four years this week, while Brent crude oil prices have remained relatively subdued, hovering around $64 a barrel.
ALSO READ: Rand strengthens to highest level since 2022 as gold hits record
Together, these factors have improved fuel price recoveries, paving the way for another month of lower prices.
