September fuel price update: Petrol and diesel still in line for major cuts

Fuel prices are still on track for some sizeable cuts come next week due to a stronger rand and stable global oil prices boosting over-recoveries for both petrol and diesel.

September will be the fourth consecutive month for fuel price decreases, bringing petrol and diesel prices to their lowest levels since January 2024.

Current price of petrol at the pumps

95 unleaded petrol currently retails for R22.32/ litre at the coast and R23.11/ litre in inland regions, where 93 unleaded is priced at R22.71/litre.

The latest data from the Central Energy Fund (CEF) indicates an over-recovery of between 84 and 91 cents per litre for petrol and between 74 cents and R1 per litre for diesel.

For context, this represents an improvement of around 25 cents/litre from mid-month expectations.

September fuel prices: Expected changes in petrol. diesel and paraffin

• Petrol 93: Decrease of 84 cents per litre.
• Petrol 95: Decrease of 91 cents per litre.
• Diesel 0.05% (wholesale): Decrease of 74 cents per litre.
• Diesel 0.005% (wholesale): Decrease of R1 per litre.
• Illuminating paraffin: Decrease of 99 cents per litre.

According to a BusinessTech report, the expected decrease could put year-to-date petrol pricing in the green again.

This after petrol prices spiked by R3 per litre in consecutive hikes between January and May 2024.

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Fuel price factors: Rand/dollar and global oil prices

Petrol and diesel price changes are implemented on the first Wednesday of every month and are determined by two main factors:

• The rand/US dollar exchange rate, which determines how fuel is purchased; and
• Global oil prices, which determines how much the fuel costs to purchase.

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

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

The main driver for the projected cuts in petrol and diesel in August has been the rand’s stronger performance against the dollar, contributing about nine cents per litre to the over-recovery in fuel prices.

The oil price has contributed to an over-recovery of between 65 and 90 cents per litre in local fuel pricing.

• At the time of writing on 30 August, Brent Crude Oil was trading at $76.09 a barrel. The rand stood at R17.75 against the American greenback.

Official fuel price adjustments

The latest data update comes with the caveat that the unaudited CEF snapshots do not cover potential changes like slate levy adjustments or retail margin changes.

How to cut down on fuel spend

While prices are predicted to see a considerable drop, MasterDrive CEO, Eugene Herbert, stressed that it is imperative motorists remain aware that fuel prices are still not easy on the pocket.

“Despite fuel price decreases, do not neglect economical driving which can further reduce fuel costs,” he said.

Fuel-saving driving techniques

Defensive driving not only reduces your chances of collisions on the road but can also can account for up to 20% savings in fuel spend:

• Vehicles RPMs between 2 000 and 3 000, can reduce fuel spend by up to 20%;
• Watching 12 seconds ahead helps anticipate traffic conditions to reduce unnecessary braking and acceleration;
• Avoiding sudden lane changes and harsh acceleration reduces fuel consumption;
• Reducing speed by 20km/h can help reduce fuel consumption by 20%;
• A three second following distances reduces the need to slow down and accelerate again.