AA expects major fuel price cut in October
SA motorists can expect major fuel price cuts in October when fuel prices are adjusted next week.
The AA says unaudited data from the Central Energy Fund (CEF) points to significant reductions in fuel prices across the board, marking the fifth consecutive decrease in 2024.
According to the CEF’s figures, ULP95 petrol is expected to cost R1.13/l less while ULP93 is set to drop by about R1.05/l. Diesel is predicted to decrease between R1.12/l and R1.10/l, while illuminating paraffin will go down by about R1.08/l.
“The expected decreases are welcome and will provide additional relief to motorists,” said the AA.
“If these decreases are realised, the cumulative impact of this fifth decrease is substantial. Considering, for instance ULP93 inland, the past four decreases amounted to about R3.36/l which brought about a saving of about R168 on a 50l petrol tank. If the expected decreases for October materialise it will bring a saving of R220.50 for a 50l tank using ULP93 since May,” notes the AA.
The AA said that while international product prices remained stable from the middle of September, the drop in oil prices was contributing significantly to the projected reductions. The stronger rand against the dollar was playing a smaller role but was assisting in widening the over-recovery anticipated in October.
“Although we are expecting fuel to be cheaper in October, we remain committed to advocating for a sustainable solution to mitigating high fuel costs and believe it is still necessary. The AA again calls on the government to urgently initiate a transparent review of the fuel price and, critically, to involve all role players who have a stake in fuel pricing,” it said.
The official fuel pricing announcement for October by the department of mineral and retroleum resources is expected on September 30 ahead of the adjustment at midnight on October 2.
