Fuel price to drop in September for 4th time in a row

Fuel prices are set to decrease across the board in September, the Automobile Association (AA) says, marking the fourth consecutive time this year that fuel prices have dropped.

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 AA said.

Current data indicated that ULP95 is set to decrease by around 68 cents a litre and 63c/l for ULP93. Diesel is also set for a decrease of around 52c/l.

The unaudited data also indicates a reduction in the cost of illuminating paraffin of around 78c/l.

“These decreases, if materialised, will bring the price 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 up their vehicles and food trolleys,” said the AA. Officially adjusted fuel prices come into effect on September 4.

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 the decrease of inflation, and the price of goods and services, the AA said, adding that 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 certainly 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 Ramaphosa.

“We again call for this review to happen with urgency in the interests of providing long-term ways of mitigating fuel price hikes in the future,” the AA said.

Cape Times