While the global oil price plummet isn’t positive news for the stock markets, it should bring relief to cash-strapped motorists, according to the Automobile Association (AA).
That’s if the rand does not suffer another blow and continues to gain momentum against major currencies.
The AA on Monday said, for now, it was a waiting game to see how fuel prices would be affected.
The AA’s Layton Beard said if the rand strengthened against the US dollar and other currencies, South African motorists could be paying less at pumps.
But with the global economy weak due to the coronavirus outbreak and an oil price war between Russia and Saudi Arabia, it won’t be easy for emerging economies like South Africa’s.
“If the oil price remains at the low that it is, it will be offset by a weak rand, but if the rand continues to strengthen and the oil price remains low, then it will certainly be good news for the consumer.”
Globally, the price of Brent crude oil dropped to $35 a barrel on Monday.