Motorists Can Look Forward to Another ‘Massive’ Petrol Price Drop in September

• A drop in the fuel price for another month running is expected as motorists can look forward to further relief in September
• The Central Energy Fund's latest figures showed strong over-recoveries, with predictions of a decrease breaching the R1 mark
• International oil and fuel costs and the rand/dollar exchange are among local and transnational factors determining fuel decreases

JOHANNESBURG — South African motorists can look forward to more relief at the fuel pump as another price drop looms for a fourth month running.

Briefly News reported earlier that the previous decrease in August marked the lowest since January.

Another 'massive' petrol price drop in September

An even bigger drop is expected as current data suggests an upward trajectory in petrol and wholesale diesel prices.

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However, according to The Citizen, this is only if the current trends continue until the end of the month.

The Central Energy Fund's (CEF) latest figures, released on Friday, 23 August, show strong over-recoveries.

This translates to price cuts of 86 cents for 95 Unleaded petrol and between 70 cents (500ppm) and 95 cents (50ppm) for diesel per the current predictions.

The deal could be sweeter, as a decrease breaching the R1 mark for September is not beyond the realm of possibility ahead of an expected official announcement by the Mineral Resources Department in the coming days.

Should the predicted decrease for petroleum unleaded and diesel pass, it will be the lowest level since January, surpassing the previous mark in August.

Currently, the 95 unleaded petrol retails at R22.32 in South Africa's coastal provinces and R23.11 in Gauteng.

Meanwhile, 93 unleaded petrol retails at R22.71.

Factors influencing petrol price

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Local and overseas factors determine fuel decreases, including international oil and fuel costs and the rand/dollar exchange.

Last month's main contributing factors were the decline in US inventories, reduced production from Canada due to the wildfires, tensions in the Middle East, and continued production cuts by the Organisation of the Petroleum Exporting Countries (OPEC).

The latest data update comes with the caveat that the unaudited CEF snapshots are not predictive. They do not cover other potential changes like slate levy adjustments or retail margin changes.

Official fuel price adjustments kick in on the first Wednesday.

Source: Briefly News