AA predicts October fuel price drops ahead of summer months

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Motorists can expect another significant decrease in fuel prices ahead of the summer months. According to the Automobile Association (AA), unaudited data from the Central Energy Fund shows that both grades of petrol, diesel and illuminating paraffin will see reductions in October.

 

The forecasted decreases will further reduce fuel costs off the back of four consecutive decreases already in 2024.

 

READ MORE: The Department of Mineral Resources and Energy announces adjustments to fuel prices effective from the 4th of September 2024

 

According to the data, ULP93 will decrease by around R1,18 cents per litre, and ULP95 will decrease by R1,26 per litre. Diesel is set to decrease considerably by around R1,10c per litre with illuminating paraffin also decreasing by around R1.04c per litre.

 

“The forecast reductions in ULP93 and ULP95 will bring this fuel cost down to prices last seen in March and April of 2022”

 

According to the AA, the expected reductions can be attributed to significantly lower international product prices. The strong performance of the Rand against the US Dollar is also playing a substantial role in the forecast reductions.

 

“These decreases are positive and will ease pressure on our economy and consumers. Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices but a decrease in fuel costs will make a difference to many”

 

The Association has however warned that the fuel price outlook for October is based on mid-month and will change before the official adjustment for October is made.

 

“Nonetheless, we remain confident that significant decreases will be seen to fuel prices for October,”

 

READ MORE: Here’s the official September fuel price decreases

Danielle Mentoor
Danielle Mentoor
Danielle is Smile FM's PM drive news reader. She has been in the radio industry since 2020 and started her career at a community radio station. When she's not keeping you up to date with the latest news, she's exploring the outdoors.

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