Petrol price set to drop about R2/l in April, the AA says
The price of Brent crude oil has fallen almost 61% so far in 2020 due to the coronavirus and an oil price dispute between Russia and Saudi Arabia
SA motorists should see the largest fuel price decrease on record from the first of April, when unleaded petrol could see a record drop of about R2 per litre, the Automobile Association (AA) said on Friday.
Oil prices have crashed in 2020 due to a price war between Saudi Arabia and Russia, which has more than offset a weaker rand, while demand for oil has also fallen due to the economic disruption caused by the Covid-19 virus.
Unleaded 95 petrol is set for a R2.18/l drop, with 93 set to decrease by R2.05, the AA said. Both grades of diesel are expected to fall about R1.65/l, with illuminating paraffin down R1.98.
These drops do not include a 16c increase in the fuel levy, and a 9c increase in the Road Accident Fund levy.
“Notwithstanding the addition of the 25c for the fuel levies, the expected decreases will bring the country’s fuel prices to levels last seen in late 2017 and early 2018,” the AA said.
The drop in the fuel price could be little relief for those affected by SA's 21-day lockdown due to the coronavirus, although the AA noted this could be a relief to transport businesses that continue to operate.
The price of oil has fallen about 61% in 2020, although this has been offset by a falling rand, which has lost about a quarter of its value against the dollar.
In morning trade on Friday the rand was at R17.55/$, having begun 2020 trading at R14/$.