Mid-month data from the Central Energy Fund (CEF) suggests another significant reduction in petrol and diesel prices in September.
According to the CEF, petrol prices are expected to drop by approximately R1.24 per litre, while diesel prices are anticipated to decrease by around R1.10 per litre.
If market conditions hold steady until the end of the month, this will mark the fifth consecutive month of fuel price decreases.
The following price changes are projected:
Petrol 93: decrease of 119 cents per litre
Petrol 95: decrease of 128 cents per litre
Diesel 0.05% (wholesale): decrease of 110 cents per litre
Diesel 0.005% (wholesale): decrease of 111 cents per litre
Illuminating paraffin: decrease of 104 cents per litre
Oil prices saw an uptick in Asian markets on Monday, fuelled by expectations of a US interest rate cut this week. However, concerns about demand and weaker economic data from China capped the gains, Reuters reported.
Brent crude futures for November increased by 38 cents, or 0.5%, reaching $71.99 per barrel.
Fed fund futures indicate that investors are increasingly anticipating a 50-basis point (bps) cut by the US central bank, rather than 25 bps, according to CME FedWatch.
Lower interest rates generally reduce borrowing costs, which can boost economic activity and increase oil demand. However, some analysts worry that a more aggressive 50 bps cut might signal deeper recession concerns, which could negatively impact demand.
Despite efforts to reuse over 85% of produced water, a significant portion is still pumped underground.
Market optimism was further tempered by weaker Chinese economic data released over the weekend, with a prolonged low-growth outlook in the world's second-largest economy casting doubts over future oil demand, according to IG market strategist Yeap Jun Rong.
The rand meanwhile, strengthened in early trading on Monday, as markets prepared for a busy week of interest rate announcements and a local inflation report.
In morning trade, the rand traded at R17.66 to the dollar, about 0.6% stronger than its previous close, Reuters reported.
"There are many moving parts to consider this morning that will have an important role to play in determining SA's economic future over the next few months," noted ETM Analytics in a research update.
On Wednesday, local attention will turn to South Africa's August consumer inflation figures. In July, consumer inflation dropped to 4.6% year-on-year, just above the South African Reserve Bank's target of 4.5%.
A similar reading would likely strengthen expectations for a 25-basis point rate cut from the SARB on Thursday, as predicted by economists surveyed by Reuters.
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