Motorists can expect further reprieve at the pumps as fuel prices are expected to decrease yet again in September, marking the fourth month in a row that prices have dropped in the country.
According to the Automobile Association (AA), the unaudited mid-month data released by the Central Energy Fund (CEF) indicates that the price of fuel – petrol, diesel, and illuminating paraffin – is expected to decrease across the board.
The current data indicates that ULP95 is set to decrease by around 68 cents/litre and 63c/l for ULP93. Diesel is also set for a decrease of around 52c/l. The unaudited data also indicates a reduction in the cost of illuminating paraffin of around 78c/l.
“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,” the association said.
According to the CEF’s data, lower on 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 assisting slightly to deepen the over recovery for a positive outlook.
Lower stable fuel prices play a crucial role in the decrease of inflation, and the price of goods and services. It would benefit the economy if the fuel price decrease trajectory continued 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 Ramaphosa,” the association said.
“We again call for this review to happen with urgency in the interests of finding long-term ways of mitigating fuel price hikes in the future.”
Officially adjusted fuel prices come into effect on Wednesday, September 4. The official adjustment is announced by the Department of Mineral Resources and Energy.
