South African motorists and fleet owners can expect another significant fuel price reduction ahead of the festive season, easing pressure on business input costs, on the back of several consecutive price drops in recent months.
According to the Automobile Association, unaudited data released by the Central Energy Fund indicates that prices of both grades of petrol, diesel, and illuminating paraffin will decrease substantially in October. The latest price drop forecast comes after four consecutive price decreases this year.
“According to the data, ULP93 will decrease by around R1.18 cents/litre, and ULP95 will decrease by R1.26c/l. Diesel is set to decrease considerably by around R1.10c/l with illuminating paraffin also decreasing by around R1.04c/l. The forecast reductions in ULP93 and ULP95 will bring this fuel cost down to prices last seen in March and April of 2022,” the AA said.
The expected reductions can be attributed to significantly lower international product prices. The strong performance of the rand against the US dollar is also playing a substantial role in the forecast reductions.
“These decreases are positive and will ease pressure on our economy and consumers. Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices, but a decrease in fuel costs will make a difference to many,” said the AA.
The price outlook for October is an estimate that is calculated at mid-month and will change before the official adjustment for October is made.
“Nonetheless, we remain confident that significant decreases will be seen to fuel prices for October,” the association said.
