Fuel price expected to drop in April

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The Automobile Association (AA) says according to mid-month fuel data, the price of petrol is expected to decline by over a rand in April.

The AA says the adjustment is because of the rand’s weakness against the US Dollar coupled with the massive retreat in international petroleum prices due to the coronavirus pandemic.

Petrol is expected to decrease by R1,11 per litre, diesel by R1,10 and illuminating paraffin by R1,18 per litre.

However, the 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.

In February, the AA predicted a decrease of between 9 and 19 cents a litre for petrol, 55 cents a litre for diesel, and 68 cents for illuminating paraffin on the back of the effect of the coronavirus on global trade.

There are concerns that the coronavirus outbreak centred on Wuhan Province in China could further damage an already fragile global economy leading to a decrease in demand for oil.

AA Spokesperson Layton Beard, however, said the depreciation of the rand could impact and limit the decrease.

In the video below, Robert Maake gives reasons for the petrol price drop: