Motorists could be in for a huge fuel price cut in September based on current unaudited mid-month data from the Central Energy Fund.The Automobile Association (AA) has forecast significant decreases to fuel prices across the board.
According to the data, 95 octane is expected to drop by around R2.60 a litre while 93 may be decreased by R2.45. The wholesale price of diesel is expected to decrease by R2.30 and the price of illuminating paraffin by almost R2.00 a litre.
“The expected decreases are good news for consumers who have been battered and bruised by these prices the past six months. With these expected decreases, the price of 95ULP will dip below R23/land the price of 93ULP will cost just more than 22.50/l. while fuel is still more expensive now than it was at the beginning of the year, these forecast decreases do offer some relief,” says the Automobile Association.
The department of Energy has stressed that the daily snapshots are not predictive and do not cover the potential changes like slate levy adjustments or retail margin changes, which are determined by the department at the end of the month, taking all variables into account.
The fuel prices are usually adjusted on the first Wednesday of the month and determined by the price of oil and the rand-dollar exchange rate.
After hitting a high of $123in March, following the Russian invasion of Ukraine, oil prices have slumped. On Monday, Brent crude oil dropped almost 5% to $93.46 per barrel- around its lowest levels in six months.
Meanwhile, Iran’s Foreign Minister said Tehran will deliver its proposal later on Monday on talks to revive the 2015 nuclear accord with world powers, after Washington had accepted key demands.
The deal would mean that Iran’s crude output of 2.5 million barrels per day would no longer be under international sanctions and help relieve supply constrains that have been pushing up prices.
Source: Fin24, Business Tech, Eyewitness News, IOL, image from IOL