The fuel price is set for another record decrease from the sixth of May. The latest fuel price adjustments have been announced by Mineral Resources Minister, Gwede Mantashe.
Both grades of petrol will decrease by R1,74 per litre, diesel will go down by R1,61 per litre and illuminating paraffin by R2,23 per litre.
Plummeting oil prices caused by a virtual halt in global economic activity, during the coronavirus pandemic led to the decrease, however it would have been higher had the Rand not depreciated against the US dollar.
On Thursday, the Automobile Association said with the massive drop in fuel usage during April, due to the nationwide lockdown, revenue from the General Fuel Levy which comprises about 25 percent of every litre will also suffer costing government between R6-billion and R7-billion in revenue through not collecting this tax.
Discussing oil price plunge and its impact:
Automobile Association predicts fuel price cut for May
The Automobile Association (AA) says a record decrease in the price of fuel is expected in May due to the lockdown and other factors.
The Association says with the massive drop in fuel usage during April, due to the nationwide lockdown, revenue from the General Fuel Levy (GFL) which comprises about 25% of every litre of fuel will also suffer.
In early April 2020, the price of all grades of petrol decreased, when global oil prices crashed due to the coronavirus pandemic, which sent markets into a tailspin and a price war between Russia and Saudi Arabia further assisted in the oil prices crumble.
