Cape Town — South Africans can expect further relief at the pumps as prices across all fuel grades are expected to decrease in September for the fourth consecutive month.
Petrol reached an all-time high at nearly R25 per litre in May 2024 before June marked the first of four months of decreases. There were further significant price reductions in July and August.
The latest data from the Central Energy Fund (CEF) shows that 95 unleaded petrol will drop by 91 cents per litre, while 93 unleaded petrol will fall by 84 cents per litre. Diesel 0.05% will fall by 74 cents per litre, while Diesel 0.005% will drop by R1,01 per litre. is expected to drop by 76 cents per litre, while illuminating paraffin will drop by 99 cents per litre, The Citizen reported.
Fuel prices are determined predominantly by the Rand/US Dollar exchange rate, which determines how fuel is purchased and global oil prices, which determine how much fuel to purchase.
ALSO READ | AA predicts further fuel price cuts in September
According to TimesLIVE, the Automobile Association (AA) said the strengthening rand/US dollar exchange rate and decrease in oil prices, which had dipped mid-August and increased the over-recovery of fuel, contributed to the price reduction.
The AA said the cumulative impact of the four decreases is substantial. totalling R2.44 per litre, meaning a saving of R122 on a 50L tank.
The September fuel prices will also bring an increase in the fuel retail margins, which come into effect next month. Mineral Resources Minister, Gwede Mantashe, had approved a 5 cents per litre increase, which will marginally affect total decrease amounts.
The AA said lower fuel prices are good news for all consumers, especially during a time when all South Africans are struggling to make ends meet.
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Compiled by Matthew Petersen
