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Revenues from the retail sale of automotive fuel in South Africa are projected to grow only marginally from ** billion U.S. dollars in 2017 to ** billion U.S. dollars by 2023. One of the main reasons for this is the falling demand for passenger cars, owing to growing car price inflation and an overall increase in unemployment levels which have risen ** percent in the decade leading up to 2019. Additionally, fuel prices in the country are comparatively higher than most other nations, which has further impacted sales. In the fourth quarter of 2019, a litre gasoline was priced at **** U.S. dollars, *** times higher compared to the price in the U.S. and Russia.

Petrol prices set for a massive slump

The outbreak of the Covid-19 virus has had a devastating impact on the oil market, as prices have plunged to a decade low. As the nation-wide lockdown ends in April, industry experts believe that petrol prices could reduce by as much as * ZAR a litre. This might help drive vehicle sales in the medium term, which have currently witnessed a ** percent year-over-year decline as of .