It’s early days but if current trends persist, September could bring another significant fuel price cut for South African motorists.
SEPTEMBER could bring another significant fuel price cut for South African motorists, and it may be even bigger than the August price reduction.
Although it’s still too early in the month to accurately predict September’s fuel prices, early month data supplied by the Central Energy Fund (CEF) is showing a strong over-recovery for both petrol and diesel, which would translate into significant fuel price reductions if the currency and oil prices remain near current levels until the end of August.
The latest daily snapshot from the CEF shows an over-recovery of more than R2.30 for both 95 Unleaded petrol and 500ppm diesel and if current trends persist until month-end, we should be looking at price decreases in that region.
These fuel price cuts are far from set in stone, however. But if a R2.30 petrol price reduction did materialise, it would bring the price of 95 Unleaded down to R22.47 at the coast and R23.12 in the inland regions, where 93 Unleaded would be reduced to around R22.69.
Although decreases of this magnitude would certainly be welcomed by motorists and commuters, fuel prices are still extremely high by historical standards. Just a year ago, for instance, 95 Unleaded at the coast cost R17.58, which was already significantly up from the R14.47 it cost in August 2020 (following the Covid-related oil price crash). 95 ULP cost around R15 in 2018 and 2019.
International oil prices spiralled upwards earlier this year after Russia invaded Ukraine, but with signs of global recession emerging in the past month, prices have retreated significantly. At the time of writing, on August 10, Brent Crude oil was trading at $96.
