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Massive drop in fuel price expected for May.

South African motorists can expect a massive drop in fuel prices for the month of May, after international oil prices plunged to historic lows.

According to the latest available data from South Africa's Central Energy Fund (CEF), there is an average over recovery of more than R1,73 per liter of 95 octane unleaded petrol.

This means that the price of petrol is set to drop by next week Wednesday.

The Department of Energy is expected to announce the fuel price adjustments for May over the coming weekend.

The price of 95-octane unleaded petrol is expected to drop by R1,73 per liter

93-Octane unleaded petrol can drop with as much as R1,69 per liter.

The price of diesel can possibly decrease with between R1,45 and R1,51per liter.

Lower oil prices offsets a weaker Rand Dollar exchange rate

Oil has been under pressure since February due to a massive reduction in demand during the Coronavirus pandemic and price wars between oil producing giants.

The price of Brent Crude is currently trading at $19,91.

The weaker Rand Dollar exchange range would usually see South Africans facing a massive fuel price hike, but instead, we are set for another large drop due to the lower price of oil.

1 US Dollar is trading around the R18,60 mark.

The Automobile Association says the expected price drop comes in the wake of March's record fuel price reduction.

"The irony is that this has come at a time where motorists and businesses are severely limited as to how they can use their vehicles." said the AA.

"As matters currently stand, when South Africans come out of lockdown at the end of April, fuel prices will be around three Rand a litre lower than when they went in," it added.

Content created and supplied by: tonnies (via Opera News )

Brent Crude CEF Central Energy Fund South Africa South African


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