CALL ME BACKMore good news for South Africans on the back of data showing consumer inflation is at a three-year low, is that fuel prices across the broad will decrease in September for the fourth consecutive month in 2024.
Unaudited data from the Central Energy Fund (CEF) is showing that 95ULP is set to drop by around 94 cents/litre, and 93ULP by around 86c/l. The wholesale price of diesel is expected to decrease by around 76c/l, while the cost of illuminating paraffin will drop by almost R1.01c/l.
“The reason for this welcome news is the perfect combination of a strengthening Rand/US Dollar exchange rate since the middle of August, and significantly lower international oil prices which dipped around mid-August and increased the over recovery on the fuel prices in the period under review,” the AA notes.
The Association says if the predicted decreases materialise, the cumulative impact of the last four decreases is substantial. Considering, for instance, ULP93 Inland, the decreases amount to around R2.44/l which in total will bring about a saving of around R122 on a 50/l petrol tank.
In addition to the predicted fuel price decreases for September, consumers should expect the fuel retail margin increase that will come into effect next month. The Minister of Mineral and Petroleum Resources, Gwede Mantashe, has approved an increase of around 5c/l to the fuel retail margin which kicks in with the official adjustment for September. This may affect the total decrease amounts but only marginally.
“Lower fuel prices are good news for all consumers; apart from the immediate impact of buying cheaper fuel, input costs across various sectors are not impacted by higher fuel costs. At a time when most South Africans are still struggling to make ends meet, this is welcome news for all.”
But, says the Association, motorists wanting to fully benefit from lower fuel prices must also ensure their vehicles are in good mechanical condition, as this ensures better fuel economy.
“A vehicle that is properly serviced and maintained, and whose tyres are inflated according to manufacturer’s specifications, will have better fuel usage than a vehicle that isn’t properly maintained. We advise any motorists whose vehicles are out of warranty to seek a quality aftermarket vehicle service centre such as at one of the many AAQA general repairers located across South Africa for a vehicle holiday or health check and follow expert advice to ensure their vehicles are in optimal condition.
“Regular servicing, even when seemingly a financial burden, is crucial for fuel economy and a deterrent to future costly failures or breakdowns,” the Association says.
Fuel Review
Further to President Ramaphosa’s announcement in Parliament in July of a fuel review, the AA welcomes news that the Minister of Finance, Enoch Godongwana, will soon table a “Fuel Price Intervention Plan” to Cabinet.
“This is a positive development and, we believe, long overdue. We have no illusions that finding ways to mitigate rising fuel costs will not be an easy undertaking, but it is important that the government initiates a process that ultimately seeks to benefit consumers. We will monitor these developments closely and we are, naturally, at the ready to assist government in any way we can in this process,” the AA notes.
The official announcement by the Department of Mineral and Petroleum Resources (DMPR) for fuel pricing for September is expected on Monday, 2 September ahead of the adjustment at midnight next Wednesday, 4 September.
