Fuel Prices Set To Drop As Rand Bounces Back

South African motorists could soon enjoy another round of fuel price cuts, with early indicators pointing to a decrease in both petrol and diesel costs for May.

Business Tech reports that the drop follows global oil market shifts and a slight rebound in the rand, giving consumers a rare financial breather at the pumps.

Data from the Central Energy Fund CEF shows an over-recovery in fuel prices, which hints at another price cut following April's welcomed drop. As of mid-April, petrol was over-recovering by up to 14 cents per litre , while diesel prices reflected an even larger over-recovery of 35 to 36 cents per litre. Illuminating paraffin also shows a positive movement of 27 cents per litre.

These movements are largely driven by falling international oil prices and fluctuations in global trade politics. Brent Crude, which forms the benchmark for fuel pricing in South Africa, has been on a downward trend due to market jitters over a possible prolonged trade war between the United States and China-two of the world's biggest energy consumers.

Tensions between Washington and Beijing escalated recently after China hit back at US tariffs with their own punitive measures-raising duties on American goods to as high as 125. The US, under President Donald Trump, has refused to budge on high tariffs targeting Chinese imports. While this political jousting has triggered economic instability globally, it has ironically contributed to the downward pressure on oil prices, which dropped to their lowest levels in weeks.