Over February we saw a drop in the price of fuel, a much-needed breather while the Rand value dropped to the US Dollar. Now, for a different reason, the petrol price may drop again.
“The current data shows petrol down by up to R1.11 a litre, diesel by R1.10 and illuminating paraffin by R1.18. However, these declines must be weighed against the 25 cent increases to the fuel levies announced by the Finance Minister in February which come into effect in April.” – AA
Weight it up against the fuel levies and we are looking at a drop of 86 cents a litre for petrol price, and up to 85 cents a litre for the price of diesel according to the AA (paraffin unaffected). One of the causing factors being COVID-19 and how it has impacted the global market.
Another factor to the drop is what is currently happening in Saudi Arabia. Having recently broken away from the Organization of the Petroleum Exporting Countries (OPEC), they have cut crude prices and increased production.
“There is little indication of what the final picture of COVID-19 spread will be, nor where the Rand will stabilise against the dollar. It can also not be predicted how long the Saudis are prepared to hold out in their oil price war since their oil industry is believed to be able to maintain profitability at substantially lower per-barrel prices than the current level.” – AA
COVID-19 is a major problem in South Africa. While we will see a decrease in petrol prices, there is also a decrease in motor traffic as more and more people are self-isolating to reduce the spread of the virus. We ask that all motorists stay hygienic and safe no matter where your destination is.