International petroleum prices suffered one of the steepest plunges in recent years this week, as coronavirus fears impacted global economic activity.
This, however, is good news for South African motorists, as substantial fuel price reductions are predicted for March.
Commenting on unaudited month-end fuel price data released by the Central Energy Fund, the Automobile Association is forecasting month-end fuel price declines of between nine and 19 cents a litre for petrol, 55 cents a litre for diesel, and 68 cents for paraffin.
The AA's Leyton Beard says it is difficult to predict where current events might lead, as the Rand has not found strength against the US dollar since Finance Minister Tito Mboweni's budget speech, and the increasing consensus among economists is that South Africa is set to lose its last remaining investment grading in due course.
"This will inevitably affect the Rand/US dollar exchange rate, but the precipitous global decline in confidence and economic output as the coronavirus outbreak spreads could provide a balancing factor in the form of lower international petroleum prices," he said.
