Yet Another Massive Fuel Price Drops

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Yet another celebration for motorists following an announcement made by Automobile Association (AA) yesterday on fuel price drops.

The association said this is because of globally destructive economic instability.

The drastic price drop also came at a time where motorists have limited movements with their vehicles during this hard times of pandemic, Covid-19, which has affected economies world wide.

AA said that the impact this virus has brought to the world is likely to take a while to recover from.

“World commerce has all but collapsed in the wake of Covid-19 pandemic. Even assuming a fairly rapid end to the pandemic, it will take months for the global economy to work up a new of steam and possibly years before it returns to pre-Covid-19 levels. Absent further shocks, we expect it to be a long while before substantial oil price hikes are a reality” says AA.

Petrol is set to drop by R 1.89 while diesel will drop by R 1.17 and illuminating paraffin will drop by R 1.88.

AA also related this issue with how Rand is performing to dollar.

“The Rand has gone from an average exchange rate against the dollar of R 15.65 on 2 March to its current level at around R 18.25. In any other circumstances, a crash of 17% in six weeks would see South Africans facing a massive fuel hike. Instead we are set for another large drop” said AA.

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