With the impact of the coronavirus pandemic and production increases causing the oil price to drop, South Africans can look forward to a ‘historic’ reduction in the petrol price of around R2 per litre in April, says an analyst.

According to Jayson Dunne of Bastion Advisory, the petrol price is likely to fall by around R1.95/l in April, and the diesel price by around R1.42/l. This includes the impact of new tax increases.

“With only 3 pricing points left in the current cycle, the April forecasts are near certain,” said Dunne in a note to clients on Tuesday.

Petrol may potentially drop by a further R1.50/l in May, and diesel by around 60c, but these forecasts depend on market moves over the next four weeks, and are still far from certain.

The large projected decrease in April comes as the price of oil has continued its fall, with a barrel of benchmark Brent Crude trading at or below $30. A month ago Brent Crude was around $55/bbl.