The AA has predicted that the price of petrol in South Africa will drop substantially in the coming month.
“Globally destructive economic instability has pushed fuel prices into drastic retreat, leading to some very rare good news for South African motorists,” said the AA.
“Coming in the wake of March’s record fuel price reductions, South Africa is probably set for a second month of record fuel price drops for some fuel types.”
“The spat between Russia and Saudi Arabia has ended with an agreement which is expected to see global oil production reduced by nearly 10 million barrels a day in a bid to support oil prices. However, it may be a case of too little, too late.”
Petrol price changes
Current data analysed by the AA shows the price of fuel could drop by:
- Petrol – R1.89 per litre decrease
- Diesel – R1.17 per litre decrease
- Illuminating Paraffin – R1.88 per litre decrease
“World commerce has all but collapsed in the wake of the COVID-19 pandemic. Even assuming a fairly rapid end to the pandemic, it will take many months for the global economy to work up a new head of steam,” said the AA.
It added that the rand’s crash against the US dollar since March has not been enough to offset the steep decline in oil prices.
The market remains highly volatile, however, and the AA said these price figures “could be very different by month-end”.
“But as matters currently stand, when South Africans come out of lockdown at the end of April, fuel prices will be around R3 a litre lower than when they went in,” said the AA.