South Africans rejoice at fourth fuel price drop
A fourth consecutive drop in fuel prices a welcome relief as Central Energy Fund predictions of yet another fuel drop in September have materialised with prices decreasing from midnight on Tuesday 3 September by as much as 92c for petrol. Crude oil prices saw a slight increase during the review period, with the average Brent Crude oil price rising from $82.24 to $83.55 per barrel. This was largely due to several contributing factors including a decline in US inventories, reduced production from Canada due to wildfires, tensions in the Middle East, and continued production cuts by OPEC.
South African motorists get welcome relief at the pumps.
Internationally, petrol prices increased slightly on average owing to heightened summer seasonal demand in the Northern Hemisphere.
In contrast, prices for diesel and illuminating paraffin saw a decrease during the same period.
The rand also strengthened against the US dollar, improving from R18.44 to $18.23/$.
This appreciation contributed to lower Basic Fuel Prices for all products by about 14c/l.
Positive slate balance
Meanwhile, the cumulative slate balance for petrol and diesel at the end of June 2024 was positive, amounting to R1.8bn.
Consequently, a slate levy of zero cents per litre remains in place for petrol and diesel as of 7 August 2024.
The fuel price adjustments for September are:
Petrol 93: 92c decrease
Petrol 95: 92c decrease.
Diesel (0.05% sulphur): 79c decrease.
Diesel (0.005% sulphur): R1.05 decrease.
Illuminating paraffin (wholesale): R1.03 decrease.
Maximum LPGas retail price: 10c/kg decrease.
Big win for consumers
“The price of 95 petrol has in fact decreased by R3.30 from May to September,” explains Henry van der Merwe, chairman of the South African Petroleum Retailers Association (SAPRA).
“The global oil price has proven more balanced in August, despite its own market fluctuations.”
Fluctuating fuel costs impact every sector of society as they directly translate into higher/lower operational costs for businesses and impact the cost of living for consumers. Small businesses are often hardest hit when fuel goes up, as are commuters. The relief in the form of a decrease in fuel costs is therefore tremendous news again this month for struggling commuters and small businesses.
Van der Merwe says he agrees with analyst commentary which is cautiously optimistic about fuel prices remaining stable in the short term however he does caution motorists to keep a firm eye on prices and continue to consider fuel-efficient practices to buffer against any future increases.
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