South African consumers will be able to stretch their rands a little further this month thanks to fuel price cuts announced earlier this week.
The Department of Mineral Resources and Energy (DMRE) reduced the price of both grades of petrol by 92 cents per litre, while diesel prices fell by 79 cents (500ppm) to R1.05 (50ppm).
This means that a litre of 95 Unleaded fuel costs R21.40 on the coast and R22.19 in Gauteng, while the cheaper 93 Unleaded sells for R21.79.
Petrol prices have fallen to their lowest level since February 2023.
According to the DMRE, the declines in petrol and diesel prices in September are primarily due to reduced international fuel prices, with a slightly stronger South African rand adding approximately 11 cents to the equation.
Abigail Moyo, the spokesperson of the trade union UASA, said, “The price drop, combined with the inflation rate of 4.6% moving closer to the SA Reserve Bank’s target level of 4.5%, signals hope for further inflation ease and a much-anticipated interest rate cut by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) at its next meeting on 19 September 2024.”
“UASA is pleased with the financial relief and hopes the trend continues to bring relief to workers during the remainder of the year,” Moyo added.