Fuel prices are set to drop across the board in September, marking the fourth consecutive time this year that fuel prices have decreased in South Africa.
The Automobile Association (AA) said based on unaudited mid-month data from the Central Energy Fund (CEF), petrol, diesel and illuminating paraffin will cost less in September than since the beginning of 2024.
The current data indicates that ULP 95 is set to decrease by around 68c a litre and ULP 93 by 63c a litre. Diesel is also set to decrease to around 52c a litre. The unaudited data also indicates a reduction in the cost of illuminating paraffin of around 78c a litre.
“These decreases, if materialised, will bring the price of fuel to levels seen at the beginning of the year and will come at a very critical time for South Africans, who have had to dig deeper into their pockets to fill up their vehicles and food trolleys,” said the AA.
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According to the CEF’s data, lower-than-average international product prices are the main driver behind the potential decreases for September, with the average strength of the rand against the US dollar slightly contributing to the recovery for a positive outlook. Lower, stable fuel prices play a crucial role in decreasing inflation and the price of goods and services. It would benefit the economy if the fuel price decrease trajectory continues for longer.
“Naturally, this is welcome news for all South Africans and will certainly alleviate pressure on many households. However, the drop in fuel prices must not negate the need for a review of administered prices, including of the fuel price formula, which was announced in July by President Cyril Ramaphosa. Again, we call for this review to happen with urgency in the interest of providing long-term ways of mitigating fuel price hikes in the future,” concluded the AA.
Officially adjusted fuel prices will come into effect on Wednesday, September 4, at which time the Department of Mineral Resources and Energy will also announce the official adjustment.
