It's no joke, April fuel set for a record drop in price next month
South Africans will see the largest fuel price decreases on record at the end of March, according to the Automobile Association (AA).
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund. The fuel price will be adjusted next on Wednesday April 1.
"The crude oil price war between Saudi Arabia and Russia continues unabated, with demand for oil further suppressed as world economies retreat due to the coronavirus pandemic," the AA says. "Not even the precipitous fall of the rand against the US dollar has been able to arrest the fuel price reductions, which are historic."
Unleaded 95 octane petrol is set for a stunning R2.18 a litre drop, with 93 octane set to decrease by R2.05 a litre. Both grades of diesel are expected to fall by around R1.65, and illuminating paraffin will go down by R1.98 a litre.
"In practice, all of these drops will be slightly less because of the 16c-a-litre increase in the fuel levy and a 9c increase in the Road Accident Fund levy," the AA said.
Notwithstanding this additional 25c on fuel levies, the expected decreases will bring the country’s fuel prices to levels last seen in late 2017 and early 2018.
"It is unfortunate these massive reductions are coming at a time when private motoring is severely curtailed, but we remind motorists that in terms of the lockdown regulations, they are still allowed to fill up their vehicles."
The AA noted that the fuel price drops would also provide relief to road-haulage operators, and offset some of the economic damage resulting from the lockdown.
"We hope that, during this difficult time, companies that benefit will pass these savings back to consumers," the AA said.