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AA forecasts another 'massive' decrease in fuel prices

Economic instability has pushed fuel prices into drastic retreat, leading to some good news for South Africans who are preparing to enter into a lockdown extension.

Picture: EWN.

JOHANNESBURG - The Automobile Associations (AA) on Wednesday said the price of petrol was set for a second major decrease as the current global health crisis wreaks havoc in the oil market.

Economic instability has pushed fuel prices into drastic retreat, leading to some good news for South Africans who are preparing to enter into a coronavirus lockdown extension.

The AA's Layton Beard said while the demand for fuel was low with the majority of the world's population in quarantine and the market remained highly volatile as the pandemic was likely to keep the oil market weak for the foreseeable future.

“At this stage, our forecast is that petrol will go down by a massive R1.89 a litre, illuminating paraffin will go down by R1.88 and diesel by R1.17. It is only the middle of April and these prices will undoubtedly change by the end of the month. But our forecast is looking at significant decreases going in.”