Fleet owners and motorists will fork out less at the pumps as fuel prices are expected to decrease across the board in September.
This is according to the latest economic and oil price data which shows that consumer inflation has dipped to a three-year low, indicating that fuel prices are likely to decrease for the fourth consecutive month this year.
Unaudited data from the Central Energy Fund (CEF) shows that 95ULP is set to drop by around 94 cents/litre, and 93ULP by around 86c/l. The wholesale price of diesel is expected to decrease by around 76c/l, while the cost of illuminating paraffin will drop by almost R1.01c/l.
According to the Automobile Association (AA), the stronger rand/dollar exchange rate and lower oil prices have provided scope for these across-the-board fuel price cuts.
“The reason for this welcome news is the perfect combination of a strengthening rand/dollar exchange rate since the middle of August, and significantly lower international oil prices, which dipped around mid-August and increased the over recovery on the fuel prices in the period under review,” the AA said.
The association added that if the predicted decreases materialised, the cumulative impact of the last four decreases would be substantial. Considering, for instance, ULP93 inland, the decreases amount to around R2.44/l, which in total will bring about a saving of around R122 on a 50-litre petrol tank.
In addition to the predicted fuel price decreases for September, consumers should expect the fuel retail margin increase that will come into effect next month.
The Minister of Mineral and Petroleum Resources, Gwede Mantashe, has approved an increase of around 5c/l to the fuel retail margin, which kicks in with the official adjustment for September. This may affect the total decrease amounts, but only marginally.
“Lower fuel prices are good news for all consumers. At a time when most South Africans are still struggling to make ends meet, this is welcome news for all,” the association said.
The official announcement by the Department of Mineral and Petroleum Resources for fuel pricing for September is expected on Monday, September 2, ahead of the adjustment at midnight next Wednesday, September 4.
Meanwhile, following President Cyril Ramaphosa’s announcement in July of a fuel price review, the AA welcomed news that the Minister of Finance, Enoch Godongwana, would soon table a “Fuel Price Intervention Plan” to Cabinet.
“This is a positive development and, we believe, long overdue. We have no illusions that finding ways to mitigate rising fuel costs will be an easy undertaking, but it is important that the government initiates a process that ultimately seeks to benefit consumers,” the AA said.
“We will monitor these developments closely, and we are, naturally, at the ready to assist government in any way we can in this process.”
