Benchmark Brent oil prices tanked on Monday by ten percent to strike a four-year low, rocked by fears over virus-hit demand.

By Monday afternoon, Brent North Sea crude for delivery in May sank to around $31, which was the lowest level since February 2016, with the market pressured also by a price war between major producers Saudi Arabia.

According to the latest estimates from the Central Energy Fund, which is based on the oil price in rand, the price of 95 unleaded petrol is due for a R1.23/litre cut, while 93 unleaded petrol is on track for a R1.12/litre cut in the first week of April. Diesel prices are due to be lowered by R1.18.

Unfortunately new fuel levies of 25c/litre will also come into effect in April, which means 93 petrol may only be lowered by 87c.

These estimates will still change before the end of the month, and rand weakness – as well as a sudden recovery in the oil price – may still limit the petrol price cut.