According to reports, when the lockdown ends at the end of April, the petrol price could be nearly R4 per litre lower than it was when the lockdown started.
Following a record fuel price reduction in March, South Africa looks like it’s set for a second month of sharp price decreases, says the AA.
“The rand has gone from an average exchange rate against the dollar of R15.65 in early March to its current level of around R18.25. In any other circumstances, a crash of 17% in six weeks would see South Africans facing a massive fuel price hike. Instead, we are set for another large drop,” says an AA spokesperson.
SA’s fuel prices are said to be adjusted on a monthly basis, informed by international and local factors. Despite the increase in the Fuel and Road Accident Fund Levies, the fuel price dropped from R15.84 to R13.96 (95 unleaded, inland) on 1 April.
Based on the latest Central Energy Fund (CEF) data, it could be down to R12.07 per litre in May, a two-month decrease of R3.77.
However, the AA notes that the market remains highly volatile and cautions that these figures could be very different by month-end.