Analysts expect fuel prices in South Africa to fall significantly due to declining global oil prices and a stronger rand. The Central Energy Fund forecasts petrol prices could drop by up to R2,94 per litre and diesel by as much as R4,97.
Brent crude oil prices have fallen sharply in recent days and stand at around 73 dollars per barrel. This decline, combined with rand strength, underpins expectations for lower fuel costs.
Chief Economist at Efficient Group Dawie Roodt noted the finance minister may keep the fuel levy high initially to recover tax revenue. He added that prices could fall further in coming months if oil stays low and the rand strengthens.
Roodt said the medium-term outlook remains positive, with oil potentially dropping below 70 dollars and the rand trading below R16 to the US dollar.
