South Africans are celebrating the fourth consecutive drop in fuel prices, providing much-needed relief. The Central Energy Fund’s prediction of another fuel price reduction for September has come true, with prices decreasing by as much as 92 cents per liter for petrol, effective from midnight on Tuesday, 3 September. Although crude oil prices experienced a slight increase during the review period, with Brent Crude rising from $82.24 to $83.55 per barrel, various factors contributed to the overall decrease. These factors include a decline in US oil inventories, reduced production in Canada due to wildfires, tensions in the Middle East, and ongoing production cuts by OPEC.
South African motorists are enjoying this welcomed relief at the pumps, especially as petrol prices have risen internationally due to increased summer demand in the Northern Hemisphere. In contrast, diesel and illuminating paraffin prices have dropped during this period.
The South African rand also strengthened against the US dollar, improving from R18.44 to R18.23. This currency appreciation contributed to a reduction in Basic Fuel Prices for all products by approximately 14 cents per liter.
Positive Slate Balance
As of the end of June 2024, the cumulative slate balance for petrol and diesel was positive, amounting to R1.8 billion. As a result, the slate levy remains at zero cents per liter for both petrol and diesel as of 7 August 2024.
The fuel price adjustments for September are as follows:
– 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
A Win for Consumers
“The price of 95 petrol has decreased by R3.30 from May to September,” said Henry van der Merwe, chairman of the South African Petroleum Retailers Association (SAPRA). “Despite market fluctuations, the global oil price has remained more balanced in August.”
Fluctuating fuel costs have a significant impact across all sectors of society, directly affecting operational costs for businesses and the cost of living for consumers. Small businesses and commuters are particularly vulnerable to fuel price increases, making this month’s decrease a welcome relief. Van der Merwe echoed analysts’ cautious optimism about fuel prices remaining stable in the short term, while advising motorists to continue practicing fuel-efficient habits to mitigate the impact of any future price increases.
