Expect good news for SA petrol prices in September

Fingers crossed that predictions of a sharp dip in petrol and diesel prices will become a reality at the pumps come September.

Fuel recoveries are currently counting in motorists’ favour, with both petrol and diesel showing over-recoveries for the month so far.

This good news follows hot on the heels of last week’s price drop of 15 cents per litre for petrol and 17-28 cents per litre for diesel.

If the current over-recovery in fuel prices holds, September will be the fourth consecutive month for petrol price cuts which will bring the price of petrol and diesel to their lowest levels since January 2024.

September fuel prices: Expected changes in petrol and diesel

The latest data from the Central Energy Fund (CEF) shows that petrol and diesel prices are still on track for decreases in September, though these have been reduced from around 84 cents per litre for petrol and 90 cents per litre for diesel to about 70 cents per litre for both.

Main fuel price drivers: Rand/dollar, global oil prices

Fuel prices are adjusted on the first Wednesday of every month and are primarily determined by the international price of oil and the rand/dollar exchange rate.

The CEF, a state-owned energy company reporting directly to the Department of Mineral Resources, looks at pertinent data such as the rand/dollar exchange rate and global oil prices for its snapshots.

The rand has calmed after last week’s global stock market turmoil triggered by an uptick in the US unemployment rate and revised-down GDP growth.

Currently trading at $79.93 (as of 13 August) a barrel, the price of Brent Crude oil is contributing to an 80 cents per litre over-recovery in fuel prices. The rand, meanwhile, is undercutting this by around 10 cents per litre.

The imminent threat of a full-scale war in the Middle East between Israel and Iran may result in a sharp uptick in the price of oil, sending fuel prices higher in South Africa when that happens.

If the price of oil continues to trend downwards or remains between the $75 to $80 per barrel range, fuel prices are set for more cuts, according to

• At the time of writing on 13 August, the rand was trading at R18.33 against the American greenback.

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Official fuel price: DMRE has the final say

According to the department, the unaudited CEF snapshots are not predictive and do not cover other potential changes like slate levy adjustments or retail margin changes.

• The official fuel price adjustments will come into effect on Wednesday, 4 September.

Stay tuned to The Citizen for more fuel price updates towards the end of this month.

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