After a year marked by steep fuel price increases, there’s even more relief on the horizon for South African motorists. Early indicators suggest further price cuts are expected in October, following a consistent downward trend in recent months.
According to recent data from the Central Energy Fund (CEF), petrol prices could decrease by as much as R1.34 per litre for 95 Unleaded and R1.25 for 93 Unleaded. Diesel users can also expect relief, with potential cuts of up to R1.13 for 50ppm and R1.07 for 500ppm. This would push fuel prices down to their lowest levels since January 2022, a welcome break for consumers and businesses alike.
These decreases follow a series of reductions, including the 92 cents per litre cut in September, which came on the heels of smaller but still impactful drops in August, July, and June. Should the latest forecasts hold, petrol prices in coastal regions could dip to around R20.06 per litre for 95 Unleaded, while Gauteng may see prices fall to R20.85.
The drop in fuel prices is primarily driven by weaker international oil prices, despite efforts by oil-producing nations to curb supply. Brent crude oil was trading at $71.54 on September 9, down from the August average of $78.50, a key factor in the ongoing price relief.
While the rand remains a smaller player in the equation, contributing just 14 cents to the decrease, its current stability has played a role in keeping prices from rising further. However, market volatility and global events, such as the recent production cut extensions by OPEC+ and fluctuating US economic data, mean that the outlook could change before the month’s end.
Nevertheless, the current trend is promising, offering hope that the worst of the fuel price hikes is behind us. For now, South Africans can look forward to even greater savings at the pump, easing the financial burden as the year draws to a close.
