In a welcome relief for South African motorists, fuel prices are expected to decrease across the board in September, marking the fourth consecutive drop this year.
According to unaudited mid-month data from the Central Energy Fund (CEF), petrol, diesel, and illuminating paraffin will cost less in September than at any other time this year.
The Automobile Association (AA) reports that ULP95 is set to decrease by approximately 68 cents per litre, while ULP93 will drop by 63 cents per litre. Diesel prices are also expected to decrease by around 52 cents per litre, and illuminating paraffin will see a reduction of approximately 78 cents per litre.
The AA attributes the potential decreases to lower international product prices and a slightly stronger Rand against the US Dollar. The organisation notes that stable fuel prices play a crucial role in reducing inflation and the cost of goods and services, which would benefit the economy if the fuel price decrease trajectory continued.
While welcoming the news, the AA reiterates the need for a review of administered prices, including the fuel price formula, as announced by President Ramaphosa in July. The organisation called for urgency in finding long-term solutions to mitigate fuel price hikes.
Officially adjusted fuel prices will come into effect on Wednesday, September 4, following an announcement by the Department of Mineral Resources and Energy (DMRE).
