Petrol and diesel are looking set to become even cheaper in October. File picture: Timothy Bernard
THE YEAR 2024 might have seen some harsh fuel price increases, but that tide has turned in recent months and early indications show that motorists can look forward to further petrol and diesel price decreases in October.
According to the latest daily snapshot released by the Central Energy Fund (CEF) on September 9, the current strong over-recovery on petrol is pointing towards price decreases of around R1.34 for 95 Unleaded petrol and R1.25 for 93 Unleaded.
Diesel is looking set for smaller but still significant cuts of between R1.07 (500ppm) and R1.13 (50ppm).
The usual disclaimer applies here, as the outlook could still change significantly between now and month-end, particularly given the volatility we’ve seen with international oil prices this year amid conflicts in the Middle East.
Should the above predictions materialise, petrol prices will reach their lowest levels since January 2022, with 95 Unleaded retailing at around R20.06 at the coast and R20.85 inland, where 93 Unleaded should recede to around R20.54.
Petrol prices fell by 92 cents per litre on September 4, following decreases of 15 cents in August, R1.05 in July and R1.24 in June.
The strong over-recovery on petrol and diesel is primarily driven by weaker international oil prices, with the stronger rand contributing just 14 cents to the equation.
Brent crude oil was trading at $71.54 on Monday, September 9, well down from its August average of $78.50.
This is in spite of eight members of the OPEC+ group of oil-producing nations agreeing last Thursday to extend production cuts until the end of November.
International stock markets traded significantly weaker on Friday and Monday after worse-than-expected jobs data out of the US stoked fears about a possible recession.
The South African rand has weathered the storm thus far, albeit trading slightly weaker at R17.95 on Monday morning.