Aug 17, 2024

Expected Fuel Price Drop in September: Relief for South African Motorists

Expected Fuel Price Drop in September: Relief for South African Motorists

The Central Energy Fund (CEF) has released mid-month data that indicates another significant drop in fuel prices for South African motorists in September. If market conditions remain stable, we could see the fifth consecutive month of price reductions, bringing some much-needed relief to consumers.

Expected Price Changes:

• Petrol 93: Decrease of 62 cents per litre
• Petrol 95: Decrease of 67 cents per litre
• Diesel 0.05% (wholesale): Decrease of 53 cents per litre
• Diesel 0.005% (wholesale): Decrease of 77 cents per litre
• Illuminating Paraffin: Decrease of 78 cents per litre

These adjustments are primarily driven by the global oil price and the rand/dollar exchange rate. Oil prices have been trending below $80 a barrel, while the rand has experienced slight weakening. Despite the fluctuation, the anticipated cuts will benefit motorists, pushing year-to-date adjustments into positive territory.

Global Market Influence

The recent drop in oil prices, along with a steady rand, has led to an over-recovery in local pricing, which will likely be reflected in September’s adjustments. Ongoing tensions in the Middle East, along with a slowdown in China’s market, have kept global oil prices in check.

Brent crude, trading around $80 a barrel, and the weaker rand relative to July, have both contributed to the anticipated decrease in fuel prices. South African fuel prices are set on the first Wednesday of each month, determined by international oil prices and the rand/dollar exchange rate.

Impact at the Pumps

Here's how the price cuts are expected to affect motorists in September:

Inland Regions:

• 93 Petrol: From R22.71 to R22.09 per litre
• 95 Petrol: From R23.11 to R22.44 per litre
• Diesel 0.05% (wholesale): From R20.38 to R19.85 per litre
• Diesel 0.005% (wholesale): From R20.74 to R19.97 per litre
• Illuminating Paraffin: From R14.80 to R14.02 per litre

Coastal Regions:

• 93 Petrol: From R21.92 to R21.30 per litre
• 95 Petrol: From R22.32 to R21.65 per litre
• Diesel 0.05% (wholesale): From R19.59 to R19.06 per litre
• Diesel 0.005% (wholesale): From R19.98 to R19.21 per litre
• Illuminating Paraffin: From R13.80 to R13.02 per litre

Conclusion

With these anticipated decreases, motorists can expect to pay less at the pumps in September, continuing a trend of declining fuel prices. This is welcome news for many, as the year-to-date price adjustments remain positive, providing some financial relief to South Africans during challenging economic times.

For more updates on fuel prices and other important news, visit eKayzone Business Networking Blog News channel at www.ekayzone.co.za and follow #eKayzoneNews on all social media platform