Could petrol really fall to R5 in South Africa? All motorists wish it happens like that because for years petrol have been a Major reason why most people do not drive their cars to work , they prefer using public transport .
Apart from the virus there is another factor which is the price wars between Russia and Saudi Arabia .
Wikipedia tells us that “On 8 March 2020, Saudi Arabia initiated a price war with Russia, triggering a major fall in the price of oil, with US oil prices falling by 34%, crude oil falling by 26%, and brent oil falling by 24%.[1] The price war was triggered by a breakup in dialogue between the Organization of the Petroleum Exporting Countries (OPEC) and Russia over proposed oil production cuts in the midst of the 2019–20 coronavirus pandemic. Oil prices had already fallen 30% since the start of the year due to a drop in demand.[2] The price war is one of the major causes of the currently ongoing global stock market crash. “
Could petrol really fall to R5 in South Africa?
“Notwithstanding the addition of the 25c for the fuel levies, the expected decreases will bring the country’s fuel prices to levels last seen in late 2017 and early 2018,” the AA said.
“The oil market supply chains are broken due to the unbelievably large losses in oil demand, forcing all available alternatives of supply chain adjustments to take place during April and May: Onshore product storage surge, refinery run rate cuts globally, massive increase in floating storage deals and upstream supply shut-ins,” Rystad Energy’s head of Oil Markets Bjornar Tonhaugen said in a statement.
“We are sending this proactive request to our suppliers to ask that you take steps to reduce oil production in response to the pandemic,” Plains said in the letter, according to Bloomberg.
d. “The oil market expects these massive supply and demand shocks to fade within 3 to 4 months, a plausible outcome,” Bank of America said .
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