All fuel grades set to drop by more than R1 in October

Fuel

Cape Town —Fuel prices for October are nearly finalised, but motorists can expect a drop of more than R1 across all fuel grades across the country.

Fuel prices will officially change on Wednesday 2 October, and unaudited data from the Central Energy Fund (CEF) points to a price cut of R1.13 for 95 unleaded and R1,06 for 93 unleaded. 50ppm and 500ppm Diesel will decrease by R1.11 and R1.13 respectively, IOL reported.

With just one day to go until prices are finalised, there is a slim chance of any significant changes so it is likely to be close to the final figures. These predictions mean 95 unleaded will cost R20.27 per litre on the coast, and R21,06 inland, while 93 unleaded will cost R20.73 per litre.

Diesel remains well below R20 per litre as it will cost R17.82 on the coast and R18/58 per litre inland. This excludes unregulated fuel types.

ALSO READ | Early predictions point to a significant fuel decrease for October

Petrol and Diesel prices will be at their lowest since February 2022, while it is R1.50 less than it was at the beginning of 2024. The contributing factors to the drop in fuel prices are attributed to lower international oil prices, showing an over-recovery of 92 cents, combined with South Africa’s rand strengthening by 22 cents.
The price of Brent Crude oil also hit three-year lows in September, sitting below $70 a barrel for the first time since December 2021.
According to eNCA, Senior economist and strategist at PwC, Xhanti Payi, said the drop in fuel prices means fuel is R4 cheaper this year than it was last year, and could lead to cuts in lending rates from the South African Reserve Bank (SARB).
“If we add up all of the cuts we’ve had, we probably have something in the vicinity of R4, if we compare the price of fuel at this stage compared to what it was last year at this stage,” Payi said.
“When we measure inflation, we measure year-on-year and if we’ve got a R4 deduction year-on-year, that tells us we’ve got a nice reduction, and we will see that on inflation. One hopes that we will continue to see continuous cuts in lending rates from the reserve bank,” he concluded.

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Compiled by Matthew Petersen

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