A record monthly drop for the petrol price in South Africa has been confirmed, after nearly R2-per-litre was shaved off of fuel costs for April. Diesel and illuminating paraffin have also seen their prices drop dramatically.
Although the lockdown has limited people’s daily routine, motorists can class this as the thinnest of all silver linings during the coronavirus pandemic.
Global oil price trends have accounted for this slashing of fuel costs. The outbreak of the coronavirus has left international markets spooked, and the demand for oil has subsided. The decrease would have been more, if not for the rand’s weak monthly performance against the U.S. dollar. Despite a brief rally earlier this month, the rand is still floundering after hitting its lowest ever value against the greenback.
Furthermore, a 25-cent increase on fuel levies – announced during the February 2020 budget speech – has been added on to April’s prices. The drop could have breached the R2-per-litre mark if not for these taxes.
