Major fuel price reductions expected ahead of summer
South African motorists can look forward to significant decreases in fuel prices, according to the Automobile Association.
South African motorists can rejoice as the summer season approaches, with the Automobile Association (AA) announcing a notable reduction in fuel prices. Based on preliminary data from the Central Energy Fund (CEF), both grades of petrol, diesel, and illuminating paraffin are set to experience substantial decreases, following a trend of four consecutive price drops already this year.
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According to the AA, the price of Unleaded Petrol 93 (ULP93) is forecasted to decrease by approximately R1.18 cents per litre, while Unleaded Petrol 95 (ULP95) is expected to drop by R1.26 cents per litre. Diesel prices are also anticipated to fall significantly, decreasing by around R1.10 per litre. Furthermore, illuminating paraffin is projected to see a reduction of approximately R1.04 per litre. The predicted price adjustments would bring petrol costs to levels not seen since March and April of 2022.
These expected reductions are attributed to notably lower international product prices, complemented by the Rand’s impressive performance against the US Dollar, which is significantly influencing the anticipated price changes.
The AA commented, “These decreases are positive and will ease pressure on our economy and consumers. While this is a welcome change, we must remain mindful of other economic pressures, such as higher interest rates and rising food prices. However, decreased fuel costs will undoubtedly benefit many.”
It is important to note that while the AA provides insights on fuel price changes, it does not regulate or adjust fuel prices in South Africa. The Department of Mineral Resources and Energy (DMRE) is solely responsible for calculating and adjusting fuel prices, with official changes announced on the first Wednesday of each month.
Good fuel news for motorists going into summer https://t.co/bf1Egix9FK#ArriveAlive #Fuel #News #Summer @AASouthAfrica pic.twitter.com/GEArW2CQ15
— Arrive Alive (@_ArriveAlive) September 17, 2024
Looking ahead, the AA emphasizes that the fuel price outlook for October, which is determined mid-month, may change before the official adjustment is announced. Despite this uncertainty, the Association expresses confidence that further significant decreases will occur in fuel prices next month.
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