We're headed for an interesting period as the impacts of COVID 19, Rand/Dollar exchange rates and an oil price crash combine, resulting inchaos for the fuel price for April 2020. The petrol price is coming down!?

"The current data shows petrol down by up to R1.11 a litre, diesel by R1.10 and illuminating paraffin by R1.18. However, these declines must be weighed against the 25 cent increases to the fuel levies announced by the Finance Minister in February which come into effect in April," said the Automobile Association of SA. With the levies thrown in, we're still looking at a reduction of 86 cents per litre for petrol and 85 cents per litre for diesel.

Despite the Rand suffering heavily losses against the US Dollar, there's been chaos in the oil production with Saudi Arabia breaking ranks with OPEC. The Saudis not only slashed prices, but upped production substantially. "The AA says Saudi Arabia's actions come at a time where global oil demand is in decline as the COVID-19 virus hits manufacturing and commerce, leading to a steep slump in the oil price.The last time oil prices dropped this suddenly was in the first Gulf War, almost 30 years ago. However, it means good news at the pumps for South Africans," said the AA.

How long will all of this last?"There is little indication of what the final picture of COVID-19 spread will be, nor where the Rand will stabilise against the dollar. It can also not be predicted how long the Saudis are prepared to hold out in their oil price war, since their oil industry is believed to be able to maintain profitability at substantially lower per-barrel prices than the current level," the AA notes.

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