Cape Town - There is good news on the horizon for motorists as the Automobile Association (AA) has estimated significant decreases to fuel prices across the board in September.
The expected decreases, with 95 unleaded petrol expected to drop by around R2.60 a litre, while 93 unleaded could go down by R2.45 a litre, are good news for consumers who have been battered and bruised by fuel prices in the past six months.
The AA’s evaluation of the substantial petrol price drop is based on the current unaudited mid-month data from the Central Energy Fund (CEF) which the AA said would not be mitigated by any refunds to the General Fuel Levy (GFL).
At the beginning of August, petrol prices decreased by R1.32 for both grades of fuel.
The AA said: “The decreases to fuel prices in August were offset somewhat by the 75 cents a litre for petrol and diesel which were returned to the GFL. But the decreases expected in September don’t have that problem.”
The wholesale price of diesel is expected to decrease by around R2.30 a litre and the price of illuminating paraffin by almost R2 a litre.
The main drivers behind the decreases are a strengthening rand and a slump in international oil prices. The AA said while fuel is still more expensive now than at the beginning of the year, these forecasts offer some relief.
However, injecting a note of caution, the AA said: “While these figures are promising, it must be remembered that this is only mid-month data and that the picture could change come month-end before the adjustments for September are made.”
Fuel prices are officially calculated and adjusted on the first Wednesday of every month by the Department of Mineral Resources and Energy, which is the only entity which regulates, sets and adjusts fuel prices in South Africa.
Trade union Uasa’s spokesperson Abigail Moyo said: “Workers who had to drastically amend their budgets to deal with the high cost of living due to inflation will breathe a sigh of relief from the anticipated fuel price decrease adjustment.”