Data from the Central Energy Fund (CEF) indicates that South African motorists are likely to see a fourth consecutive fuel price reduction in September.
The anticipated decreases are:
- Petrol 93: Down by 73 cents per litre
- Petrol 95: Down by 78 cents per litre
- Diesel 0.05% (wholesale): Down by 62 cents per litre
- Diesel 0.005% (wholesale): Down by 88 cents per litre
- Illuminating paraffin: Down by 88 cents per litre
These reductions are driven by a stronger rand and lower global oil prices, with the total price cut since June amounting to R3.23 per litre, providing a slight overall price decrease for the year.
Rand Strength and Oil Prices:
- The rand has recently strengthened, contributing to the fuel price over-recovery, supported by positive economic sentiment and potential US interest rate cuts.
- Global oil prices have remained below $80 a barrel due to a balance between supply concerns and weak demand from China, further aiding the downward trend in local fuel prices.
While the current outlook is positive, economists caution that volatility may return in the final quarter of the year as global and local economic conditions evolve.
