Motorists could ‘fuel’ great in September: Massive R1 drop in petrol price predicted

The fuel price forecast for September points to less pain at the pumps for Mzansi motorists, with current data suggesting that substantial decreases for both petrol and diesel could be in store if trends persist until the end of August.

According to the latest figures from the Central Energy Fund (CEF) on 23 August, strong over-recoveries point to more bang for your buck in the tank.

As it stands, things are on track for price cuts in excess of 86 cents for 95 Unleaded petrol. Diesel could fall by between 70 cents (500ppm) and 95 cents (50ppm).

Fuel price cuts could breach R1 mark

If the current over-recovery in fuel prices holds, these decreases could even breach the R1 mark by the time the official fuel prices are announced by the Department of Mineral and Petroleum Resources.

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.

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

NOW READ: Less petrol pain? Calls for fuel pricing review committee intensify

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.
• Global oil prices, which determines how much the fuel costs to purchase.

The current over-recovery is driven mostly by lower international oil prices, with the slightly stronger rand contributing five cents to the equation at the moment.

• Brent Crude Oil was trading at $79.02 a barrel at the time of writing on 24 August, while the rand stood at R17.83 against the American greenback.

Official fuel price adjustments

The latest data update comes with the caveat that 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.

NOW READ: Fuel price explainer: How is the petrol price determined? [VIDEO]