The international oil price continues its low trend and despite the poor Rand performance versus the US dollar, we are still on for a massive fuel price decrease.

“The Rand has been pummelled by COVID-19 and the Moody’s downgrade to junk status, and yet we are still able to predict record-territory fuel price drops. This goes to show just how severely the world oil price has collapsed.” The AA said.

Petrol is set to drop by around R1.74 a litre in May, with diesel falling by R1.56 and illuminating paraffin a whopping R2.18.

Seen in context, the predicted decreases will result in a fall of R3.84 a litre to 93 unleaded petrol inland since January, and R4.00 to 95 petrol over the same period. Diesel users are also benefiting with the predicted price now around R3.49 a litre cheaper than it was five months ago.

The petrol price was last below R13 a litre in July 2017. In March 2016 petrol cost R11.74 a litre with the price rising to R12.62 a month later. The figures forecast for May 2020 will bring the price of petrol to levels last seen five years ago.