Fuel prices are coming down for the fifth month in a row. File picture: David Ritchie / Independent Media.
Fuel prices are set to be lowered for the fifth month in a row from Wednesday, October 2, with substantial decreases on the cards for both petrol and diesel.
Month-end unaudited data from the Central Energy Fund (CEF) is pointing to petrol price cuts of R1.13 for 95 Unleaded and R1.06 for 93 Unleaded, while diesel is expected to decrease by between R1.11 (50ppm) and R1.13 (500ppm).
This will bring the cost of a litre of 95 Unleaded petrol at the coast down to around R20.27, while those in Gauteng will pay in the region of R21.06. The cheaper 93 Unleaded is expected to retail for R20.73.
The wholesale price of diesel should land around R17.82 at the coast and R18.58 inland, from Wednesday, excluding retail margins for this unregulated fuel type, which are usually around 15%.
These predicted fuel prices are not set in stone, however, with the Department of Mineral Resources and Energy expected to announce the official adjustments, following their final calculations, early this week.
Petrol and diesel prices are set to reach their lowest levels since February 2022. Petrol will also be around R1.50 less expensive than it was in January 2024.
Lower international oil prices are the primary driver behind October’s anticipated fuel price reductions, contributing 92 cents to the over-recovery for petrol, while the stronger South African rand is strengthening the equation by 22 cents at present.
The price of Brent Crude oil neared three-year lows in September, settling below $70 for the first time since December 2021, Reuters reported, as oil cartel OPEC revised its world oil demand forecast for the remainder of 2024 and 2025.
However, given the volatile situation in the Middle East, with Israel’s attacks on Lebanon threatening to engulf the region in a bigger war, oil prices could certainly surge at any moment.
IOL
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