Quite frankly, we feel like the coronavirus owes us a favour or two at this point: But thanks to the mass outbreak of the disease, our petrol prices for April are likely to plummet at a rapid rate. Despite a weakened rand, the slump in crude oil’s value has massively outweighed ZAR’s performance, which is good news for SA’s drivers.
Over the course of 2019, the petrol price increased by 15%. But the motorists of Mzansi are starting to feel the benefits of falling costs and more reasonable prices at the pumps – this will be the fourth consecutive month of 2020 where the expense of fuel has gotten cheaper, and its come at the behest of a dramatic oil stand-off in the Gulf.
How coronavirus will affect the petrol price in April
The current data shows petrol costs are set to fall by up to R1.11 a litre. Diesel is likely to decrease by more than R1.10, and even illuminating paraffin is forecast to plummet – by R1.18. However, there is a major caveat we all have to take into account: Taxes on fuel will be added on to the final totals for April.
We’ll have to fork out another 25 cents per litre, which takes a chunk out of the forecasted price drops. However, as the coronavirus continues to spread – and the oil crisis stagnates – even the additional fuel levy may not be able to keep the decreases below the R1 mark. The AA have issued a statement on the matter:
“As the spread of the coronavirus accelerates, world markets have plunged. The rand has been sharply weaker against the dollar. However, this has happened side-by-side with Saudi Arabia’s decision to break ranks with OPEC. Not only have they slashed crude prices, but production has increased substantially.”
“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. It will take quite some time for the global economy to get back on an even keel, and the next two or three months will provide fuel price relief to SA’s motorists.”
AA statement on coronavirus’ impact on the petrol priceThe forecast petrol price for April 2020
Taking these forecasts and first estimates into account, here’s what you can expect to pay for fuel from the first week of April onwards. However, we have to stress that these mid-month estimates are liable to change by the time the Department of Energy set next month’s costs in stone.
CoastalPetrol: R14.10Diesel: R12.39InlandPetrol: R14.73Diesel: R12.93
[FUEL PRICE OUTLOOK] Mid-month figures predicts decline in fuel price: https://t.co/mj1d4tNvWB @LaytonBeard @_ArriveAlive @SABCNewsOnline @encanews @News24 @GTP_Traffstats pic.twitter.com/XhPfIC38eJ
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