South African fuel prices will be at their lowest point in almost three years from October

South Africans have been buckling under the weight of heavy fuel prices for years now, but thankfully the tide appears to be turning in the right direction, for October 2024’s petrol prices. 

Thanks to weak international oil prices, the most current data from the Central Energy Fund is pointing to petrol price decreases of between R1.05 (93 Unleaded) and R1.12 (95 Unleaded) from the beginning of October, while diesel looks set to go down by R1.10 (50ppm) to R1.12 (500ppm).

Although these price adjustments are not set in stone, it is inevitable that South Africans will experience more significant fuel price relief from next month.

If the above predictions materialise, a litre of 95 Unleaded petrol will cost R20.28 at the coast and R21.07 in Gauteng, where 93 Unleaded will settle around R20.74.

Both petrol and diesel prices will dip to levels last seen in February 2022.

The past three years has brought much volatility for local fuel prices, with 95 Unleaded having reached an all-time high of R26.90 at the coast in July 2022 before receding to R22.81 by year-end. 2023 saw the petrol price vary between R20.75 and R23.82.

While the cost of coastal 95 ULP stood at R21.77 in January 2024, in just four months it had risen by R2.93 to spike at R24.70 in May. Prices then receded by R3.30 in a consistent spate of decreases in the following four months, making petrol slightly cheaper in September than it was in January.

It’s hard to tell just how long the fuel price outlook will remain positive.

International oil prices have tracked weaker for most of September, largely due to weak economic data from major economic regions such as the US, China and Europe. On September 26, Brent Crude oil was trading at $73.46 (R1,262), somewhat lower than its August average of $78.54 and July average of $83.55.

Although less of a factor, the strong rand has been adding impetus to the fuel price equation, dipping below the $17.20 mark on Thursday.

IOL Motoring

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