Unaudited data from the Central Energy Fund (CEF) has forecasted that fuel prices across the broad will decrease in September for the fourth consecutive month in 2024.
The CEF’s data shows that 95ULP is set to drop by around 94 cents per litre, and 93ULP by around 86c per litre. The wholesale price of diesel is expected to decrease by around 76c per litre, while the cost of illuminating paraffin will drop by almost R1.01c per litre.
According to the Automobile Association (AA), this is due to a strengthening Rand to US Dollar exchange rate since the middle of August, and significantly lower international oil prices which dipped around mid-August.
“if the predicted decreases materialise, the cumulative impact of the last four decreases is substantial. Considering, for instance, ULP93 Inland, the decreases amount to around R2.44/l which in total will bring about a saving of around R122 on a 50/l petrol tank.”
While decreases are expected for September, the AA has warned consumers that they should expect the fuel retail margin increase that will come into effect next month.
This after the Minister of Mineral and Petroleum Resources, Gwede Mantashe, approved an increase of around 5c/l to the fuel retail margin which kicks in with the official adjustment for September. This may affect the total decrease amounts but only marginally.
“Lower fuel prices are good news for all consumers; apart from the immediate impact of buying cheaper fuel, input costs across various sectors are not impacted by higher fuel costs. At a time when most South Africans are still struggling to make ends meet, this is welcome news for all.”
But, says the Association, motorists wanting to benefit from lower fuel prices must also ensure their vehicles are in good mechanical condition, which ensures better fuel economy.
The official announcement by the Department of Mineral and Petroleum Resources (DMPR) for fuel pricing for September is expected on Monday, 2 September ahead of the adjustment at midnight next Wednesday, 4 September.
READ MORE: More fuel price cuts expected in September
