Petrol and diesel prices are expected to fall further at the start of October, perhaps pushing fuel prices back to levels recorded when Russia invaded Ukraine in February 2022.
According to the most recent Central Energy Fund (CEF) projection, the price of 95 unleaded petrol is expected to fall by R1.26 per litre, while the wholesale price of diesel could fall by roughly R1.10 per liter. Final prices will be set at the end of September.
The current anticipated decreases would bring the price of 95 unleaded petrol in Gauteng below R21 for the first time in 31 months. According to current estimates, coastal petrol prices may fall to roughly R20.20.
According to current estimates, diesel prices in Gauteng might decrease to roughly R18.50 per litre, and along the coast to R17.70, the lowest levels seen since February 2022.
The invasion of Ukraine disrupted supply chains and curtailed imports of Russian crude oil, sending oil prices to multi-year highs.
South African fuel prices are also affected by the rand exchange rate, as oil is priced in dollars. The rand is now trading at its highest level since mid-2023, ahead of a projected sharp drop in US interest rates this week, which would make the dollar less enticing to investors looking to earn interest on their money.
The final fuel prices for October will be determined at the end of September. Fuel prices will be adjusted on the first Wednesday of next month.
South African fuel costs are also controlled by the rand exchange rate, as oil is priced in USD. The rand is now trading near its highest level since mid-2023, ahead of a projected significant drop in US interest rates this week, which would make the dollar less enticing to investors looking to earn interest on their money.
The final fuel rates for October will be set at the end of September. Fuel prices will be modified on the first Wednesday of the following month.