September set to usher in more savings at the pumps, says AA

16 August 2024 - 11:03 By Motoring Reporter and AASA
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Data indicates ULP95 is set to decrease by about 68c/litre and by 63c/l for ULP93. Diesel is set for a decrease of about 52c/l. Stock photo.
Data indicates ULP95 is set to decrease by about 68c/litre and by 63c/l for ULP93. Diesel is set for a decrease of about 52c/l. Stock photo.
Image: 123RF/VLADYSLAV STAROZHYLOV

Fuel prices are set to decrease across the board in September, marking the fourth consecutive time this year that fuel prices have dropped.

The Automobile Association (AA) said based on 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 data indicates ULP95 is set to decrease by about 68c/litre and by 63c/l for ULP93. Diesel is set for a decrease of about 52c/l. The unaudited data also indicates a reduction in the cost of illuminating paraffin of around 78c/l.

“The decreases, if materialised, will bring the prices of fuel to levels 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 their vehicles and food trolleys,” said the AA. 

According to the CEF’s data, lower on average international product prices are the main driver behind the potential decreases for September, with the average strength of the Rand against the US dollar assisting slightly to deepen the over-recovery for a positive outlook. Lower stable fuel prices play a crucial role in a decrease in inflation, and the price of goods and services. It would benefit the economy if the fuel price decrease trajectory continued for longer.

“Naturally this is welcome news for all South Africans and will alleviate pressure on many households. However, the drop in fuel prices must not negate the need for a review of administered prices, including of the fuel price formula, which was announced in July by President Cyril Ramaphosa. We again call for the review to happen with urgency in the interests of providing long-term ways of mitigating fuel price hikes in the future,” said the AA.

Officially adjusted fuel prices come into effect on September 4. The official adjustment is announced by the department of mineral resources and energy.


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