The Automobile Association (AA) has reported on unaudited month-end data released by the Central Energy Fund. The international oil price continues its low trend and despite the poor Rand performance versus the US dollar, we are still on for a massive fuel price decrease.
“The Rand has been pummelled by COVID-19 and the Moody’s downgrade to junk status, and yet we are still able to predict record-territory fuel price drops. This goes to show just how severely the world oil price has collapsed.” The AA said.
Petrol is set to drop by around R1.74 a litre in May, with diesel falling by R1.56 and illuminating paraffin a whopping R2.18.
Seen in context, the predicted decreases will result in a fall of R3.84 a litre to 93 unleaded petrol inland since January, and R4.00 to 95 petrol over the same period. Diesel users are also benefiting with the predicted price now around R3.49 a litre cheaper than it was five months ago.
The petrol price was last below R13 a litre in July 2017. In March 2016 petrol cost R11.74 a litre with the price rising to R12.62 a month later. The figures forecast for May 2020 will bring the price of petrol to levels last seen five years ago.
