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Significant decreases to fuel prices across the board are expected in September based on current unaudited mid-month data from the Central Energy Fund (CEF). And, says the Automobile Association (AA), the expected decreases will not be mitigated by any refunds to the General Fuel Levy (GFL), so they will be substantial.

 

“The decreases to fuel prices in August were offset somewhat by the 75c/l for petrol and diesel which were returned to the GFL. But the decreases expected in September don’t have that problem,” the AA notes.

 

According to the data, 95ULP is expected to drop by around R2.60/l, and 93ULP by around R2.45/l. The wholesale price of diesel is expected to decrease by around R2.30/l and the price of illuminating paraffin by almost R2.00/l.

 

The main drivers behind the decreases are a strengthening Rand and lower international oil prices.

 

“The expected decreases are good news for consumers who have been battered and bruised by these prices the past six months. With these expected decreases, the price of 95ULP will dip below R23/l and the price of 93ULP will cost just more than R22.50/l. While fuel is still more expensive now than it was at the beginning of the year, these forecast decreases do offer some relief,” says the AA.

 

The Association says while these figures are promising, it must be remembered that this is only mid-month data and that the picture may change come month-end before the adjustments for September are made.

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