Fuel prices are expected to drop across the board in September, marking the fourth consecutive decrease this year in South Africa. According to the Automobile Association (AA), based on unaudited mid-month data from the Central Energy Fund (CEF), the cost of petrol, diesel, and illuminating paraffin will be lower in September than at any other time this year.
The AA explained that the current data indicates a significant decrease, with ULP95 expected to drop by around 68 cents per litre and ULP93 by approximately 63 cents per litre.
Diesel is also set for a reduction of about 52 cents per litre while illuminating paraffin could see a decrease of around 78 cents per litre.
“These decreases, if they materialise, will bring the price of fuel to levels last 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,” stated the AA.
The organisation further elaborated that according to the CEF’s data, the primary factor behind the potential price decreases for September are lower average international product prices. Additionally, the average strength of the Rand against the US Dollar has provided slight assistance, deepening the over-recovery and contributing to the positive outlook.
The AA highlighted that stable, lower fuel prices play a crucial role in reducing inflation and the cost of goods and services. The organisation emphasised that if the trend of decreasing fuel prices continues, it could significantly benefit the economy in the long term.
“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 the fuel price formula, which was announced in July by President Ramaphosa. 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,” the AA concluded.
Officially, the adjusted fuel prices will come into effect on Wednesday, 4 September 2024. The AA noted that the official announcement of the adjustment will be made by the Department of Mineral Resources and Energy (DMRE).
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As motorists anticipate this potential drop in fuel prices, what are your thoughts on this promising development? Share your views in the comment section below.
