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South African motorists can expect another significant fuel price reduction to kick off summer says the Automobile Association (AA). Commenting on unaudited data from the Central Energy Fund (CEF), the AA says both grades of petrol, diesel, and illuminating paraffin prices show substantial decreases that will further reduce fuel costs off the back of four consecutive decreases already in 2024.

“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,” says the AA.

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,” the AA says.

The Association notes that the outlook for October is made 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 concludes.

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