Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the AA said the price drop will take effect on 1 April.
“The crude oil price war between Saudi Arabia and Russia continues unabated, with demand for oil further suppressed as world economies retreat due to the coronavirus pandemic,” said the AA.
“Not even the precipitous fall of the rand against the US dollar has been able to arrest the fuel price reductions, which are historic.”
The expected price changes are detailed below – and exclude the 16-cent increase in the fuel levy and 9-cent increase in the RAF levy.
The total levy addition will be 25 cents.
- 95 Petrol – R2.18 per-litre decrease
- 93 Petrol – R2.05 per-litre decrease
- Diesel – R1.65 per-litre decrease
- Illuminating Paraffin – R1.98 per-litre decrease
“Notwithstanding the addition of the 25 cents for the fuel levies, the expected decreases will bring the country’s fuel prices to levels last seen in late 2017 and early 2018.”
“It is unfortunate that these massive reductions are coming at a time where private motoring is severely curtailed, but we would remind motorists that in terms of the lockdown regulations, they are still allowed to fill up their vehicles.”
The AA added that the fuel price drops will provide relief to road haulage operators, and offset some of the economic damage resulting from the lockdown.
“We hope that, at this difficult time, companies that benefit will pass these savings back to consumers,” the AA said.