By Annisa Essack
According to the Central Energy Fund’s current unaudited mid-month data, significant reductions in fuel prices are expected in September (CEF). According to the Automobile Association (AA), the expected decreases will be considerable because any refunds to the General Fuel Levy (GFL) will not offset them.
“The 75c/l somewhat offset the reductions in fuel prices in August for petrol and diesel returned to the GFL.” However, the AA notes that the September decreases will not have this issue.
According to the data, 95ULP is expected to fall by around R2.60/l, while 93ULP is likely to fall by around R2.45/l.
The wholesale price of diesel is expected to fall by around R2.30/l, while the cost of illuminating paraffin will fall by nearly R2.00/l.
The main reasons for the declines are a stronger Rand and lower international oil prices.
“The anticipated price cuts are welcome news for consumers who have been battered and bruised by these prices over the last six months. With these anticipated price cuts, 95ULP will cost less than R23/l, and 93ULP will cost slightly more than R22.50/l. While fuel is still more expensive than it was at the start of the year, these forecast decreases provide some relief,” according to the AA.
While these figures are encouraging, the Association points out that they are only mid-month data and that the picture may change by the month’s end before September adjustments are made.