The Automobile Association (AA) has commented on the Central Energy Fund‘s unaudited mid-month fuel price data by stating that because of the massive retreat of international petroleum prices, there may be fuel price reductions at the end of March.
The association said that the current data shows that petrol are expected to go down by up to R1.11 a litre, diesel by R1.10 and illuminating paraffin by R1.18. “As the spread of the Covid-19 virus accelerates across the globe, world financial markets have plunged, with capital fleeing to safe-haven assets. The rand has been sharply weaker against the dollar on this trend.”
“The last time oil prices dropped this suddenly was in the first Gulf War, almost 30 years ago. However, it means good news at the pumps for South Africans.”
The association said it doesn’t believe the declines will end at their current levels. “It will take quite some time for the global economy to get back on an even keel after the current ongoing events, and the next two or three months seem set to provide some fuel price relief to hard-pressed motorists.”
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