Fuel Prices Set to Drop in September

Good news for motorists! There are predictions that petrol and diesel prices will take a nice dip come September 2024.

Currently, both petrol and diesel are showing over-recoveries this month, which is great for all of us who drive. Just last week, we saw a price drop of 15 cents per litre for petrol and between 17-28 cents for diesel.

If these over-recovery trends continue, September could bring even lower prices, dropping to their lowest levels since January of this year.

The latest data shows that while earlier estimates suggested price cuts of about 84 cents per litre for petrol and 90 cents for diesel, those numbers have now been adjusted to around 70 cents for both fuel types.

The prices are usually updated on the first Wednesday of each month and are influenced mainly by the international oil price and the rand/dollar exchange rate.

Currently, Brent Crude oil is trading at $79.93 a barrel, contributing to an over-recovery of about 80 cents per litre for local fuel prices. However, the rand’s performance is slightly eating into this benefit by around 10 cents per litre.

While these reductions are promising, there is still a concern regarding potential disruptions due to tensions in the Middle East, particularly between Israel and Iran, which could push prices back up.

If oil prices remain stable within the $75 to $80 per barrel range, we can expect further cuts in fuel prices. Keep an eye on updates as we near the end of the month!