Motorists set for relief as big fuel price cuts expected for October
The latest data suggests significant reductions in fuel prices, marking the fifth consecutive drop this year, as motorists look forward to savings at the pumps.
South African motorists are set to enjoy substantial savings at fuel stations next month, as adjustments are anticipated for October pricing. The Automobile Association (AA) has revealed that preliminary data from the Central Energy Fund (CEF) indicates significant decreases across various fuel categories. This would mark the fifth consecutive reduction in fuel prices for 2024.
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Current estimates suggest that ULP95 petrol could decrease by approximately R1.13 per litre, while ULP93 is likely to drop by around R1.05. Diesel prices are also forecasted to fall, with reductions between R1.10 and R1.12 per litre, and illuminating paraffin expected to decrease by about R1.08.
“The projected price cuts are a welcome relief for motorists,” stated the AA. “If realized, this would result in significant cumulative savings. For example, ULP93 Inland has seen a cumulative reduction of around R3.36 per litre over the past four pricing adjustments, equating to roughly R168 saved on a 50-litre petrol tank. Should the anticipated reductions for October come to fruition, this would lead to an additional R220.50 saved since May.”
Also read: Major fuel price reductions expected ahead of summer
While international product prices have remained stable, the recent drop in oil prices is a primary factor contributing to these expected reductions. Additionally, a stronger Rand against the US dollar is assisting in expanding the anticipated over-recovery for October, albeit to a lesser extent.
The AA has reiterated its commitment to pushing for sustainable strategies to address escalating fuel costs. It emphasizes the necessity for a transparent government review of fuel pricing that includes all stakeholders involved in the industry.
The Department of Mineral and Petroleum Resources (DMPR) is expected to officially announce the fuel price changes on Monday, 30 September, ahead of the adjustments that will take effect at midnight on Wednesday, 2 October.
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