Mid-month data from the Central Energy Fund (CEF) indicates that South African motorists could see another significant reduction in petrol and diesel prices come September.
According to the CEF, petrol prices are expected to drop by approximately 65 cents per litre, while diesel prices could decrease between 53 and 77 cents per litre.
If current market conditions persist through the end of the month, this will mark the fifth consecutive month of fuel price cuts, bringing year-to-date adjustments into positive territory for consumers.
Expected price changes are as follows:
Petrol 93: decrease of 62 cents per litre
Petrol 95: decrease of 67 cents per litre
Diesel 0.05% (wholesale): decrease of 53 cents per litre
Diesel 0.005% (wholesale): decrease of 77 cents per litre
Illuminating paraffin: decrease of 78 cents per litre
These reductions would bring fuel prices to their lowest levels since January, with petrol (95) selling for R23.11 per litre in Gauteng and R22.32 along the coast.
South Africa’s fuel prices are primarily influenced by global oil prices and the rand/dollar exchange rate, as oil is priced in US dollars. Currently, Brent crude oil is trading around $80 a barrel, down from $85 a month ago.
Reuters reported that the rand strengthened from R18.66/$ overnight to R18.03/$—its strongest level in over a month—after US data showed a slowdown in inflation, reinforcing expectations that the Federal Reserve may soon cut interest rates.
The last time the rand breached the R18.00/$ mark was in mid-July, with the currency trading around R18.94/$ a year ago.
In South Africa, fuel prices are adjusted on the first Wednesday of each month based on movements in the rand/dollar exchange rate and international oil prices.
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