While many South Africans are grappling with financial challenges brought on by the ever-rising cost of living, there is some positive news on the horizon for motorists. Fuel prices are set to decrease in October 2024, bringing much-needed relief at the pumps when adjustments take effect next week.
This comes as the Automobile Association (AA) has explained that the latest unaudited data from the Central Energy Fund (CEF) suggests significant reductions across all fuel types, marking the fifth consecutive price drop this year.
As explained by the AA, according to the CEF’s figures, ULP95 petrol is expected to fall by around R1.13 per litre, while ULP93 petrol will see a reduction of about R1.05 per litre. Diesel prices are set to drop between R1.12 and R1.10 per litre and illuminating paraffin will decrease by approximately R1.08 per litre.
“The expected decreases are welcome and will provide additional relief to motorists. If these decreases are realised, the cumulative impact of this fifth decrease is substantial. Considering, for instance, ULP93 Inland, the past four decreases amounted to around R3.36 per litre, which brought a saving of approximately R168 on a 50-litre petrol tank. If the expected October decreases materialise, it will result in a saving of R220.50 for a 50-litre tank using ULP93 since May,” the AA pointed out.
The AA also highlighted that while international product prices have remained stable since mid-September, the drop in global oil prices is a significant factor behind the expected reductions.
They added that the strengthening of the Rand against the US dollar, although a smaller contributor, is helping to widen the over-recovery expected in October 2024.
“Although we are expecting fuel to be cheaper in October, we remain committed to advocating for a sustainable solution to mitigating high fuel costs and believe it is still necessary. The AA again calls on the government to urgently initiate a transparent review of the fuel price and, critically, to involve all stakeholders in the fuel pricing process,” the AA emphasised.
The official announcement of October’s fuel prices is expected from the Department of Mineral and Petroleum Resources (DMPR) on Monday, 30 September 2024, ahead of the adjustment at midnight on Wednesday, 2 October 2024.
With the prospect of lower fuel costs, what are your thoughts on these welcome reductions? Share your views in the comment section below.
