More good news for South Africans on the back of data showing consumer inflation is at a three-year low, is fuel prices across the broad will decrease in September for the fourth consecutive month.
Unaudited data from the Central Energy Fund is showing 95ULP is set to drop by about 94c/l and 93ULP by about 86c/l. The wholesale price of diesel is expected to decrease by about 76c/l, while the cost of illuminating paraffin will drop by almost R1.01/l.
These reductions outweigh the AA's earlier mid-month projections of 68c/l for ULP95, 63c/l for ULP93, 52c/l for diesel and 78c/l for illuminating paraffin.
“The reason for this welcome news is the perfect combination of a strengthening rand/US dollar exchange rate since the middle of August and significantly lower international oil prices which dipped in mid-August and increased the over recovery on fuel prices in the period under review,” the AA noted.
The association said if the predicted decreases materialise, the cumulative impact of the past four decreases is substantial. Considering, for example, ULP93 Inland, the decreases amount to about R2.44/l which in total will bring about a saving of about R122 on a 50l petrol tank.
In addition to the predicted fuel price decreases for September, consumers should expect the fuel retail margin increase that will come into effect next month. Mineral and petroleum resources minister Gwede Mantashe has approved an increase of about 5c/l to the fuel retail margin which kicks in with the official adjustment for September. This may affect the total decrease amounts but only marginally.
“Lower fuel prices are good news for all consumers. Apart from the immediate impact of buying cheaper fuel, input costs across various sectors are not affected by higher fuel costs,” said the AA.
“At a time when most South Africans are still struggling to make ends meet this is welcome news for all.”
Price of fuel to drop more than expected in September, says AA
Image: Freddy Mavunda
More good news for South Africans on the back of data showing consumer inflation is at a three-year low, is fuel prices across the broad will decrease in September for the fourth consecutive month.
Unaudited data from the Central Energy Fund is showing 95ULP is set to drop by about 94c/l and 93ULP by about 86c/l. The wholesale price of diesel is expected to decrease by about 76c/l, while the cost of illuminating paraffin will drop by almost R1.01/l.
These reductions outweigh the AA's earlier mid-month projections of 68c/l for ULP95, 63c/l for ULP93, 52c/l for diesel and 78c/l for illuminating paraffin.
“The reason for this welcome news is the perfect combination of a strengthening rand/US dollar exchange rate since the middle of August and significantly lower international oil prices which dipped in mid-August and increased the over recovery on fuel prices in the period under review,” the AA noted.
The association said if the predicted decreases materialise, the cumulative impact of the past four decreases is substantial. Considering, for example, ULP93 Inland, the decreases amount to about R2.44/l which in total will bring about a saving of about R122 on a 50l petrol tank.
In addition to the predicted fuel price decreases for September, consumers should expect the fuel retail margin increase that will come into effect next month. Mineral and petroleum resources minister Gwede Mantashe has approved an increase of about 5c/l to the fuel retail margin which kicks in with the official adjustment for September. This may affect the total decrease amounts but only marginally.
“Lower fuel prices are good news for all consumers. Apart from the immediate impact of buying cheaper fuel, input costs across various sectors are not affected by higher fuel costs,” said the AA.
“At a time when most South Africans are still struggling to make ends meet this is welcome news for all.”
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