Fuel relief: South African motorists save big as petrol prices fall

Motorists across South Africa are enjoying much-needed relief at the pumps, with petrol prices falling by as much as R164.80 over the past three months. The steady decline in fuel prices, which began in June and continued through to September, has brought significant financial benefits to road users.

As of September 2024, petrol 95 now costs R22.19 per litre, a notable decrease from R24.25 per litre in June. This drop translates into meaningful savings for drivers, depending on the size of their vehicle’s fuel tank. For instance, refilling a 30-litre tank now costs R665.70, compared to R727.50 three months ago – a saving of R61.80. Larger vehicles with 80-litre tanks are saving the most, with costs dropping from R1,940 to R1,775.20, offering R164.80 back to motorists.

Consistent Price Reductions

Between June and September 2024, the price of petrol fell by R2.06 per litre, offering widespread relief. Drivers with 50-litre tanks saw their refill costs drop from R1,212.50 to R1,109.50, saving R103. Motorists with 70-litre tanks enjoyed even more substantial savings, with costs decreasing by R144.20, from R1,697.50 to R1,553.30. The bigger the tank, the more significant the savings.

The fuel price reductions have been driven by two main factors: a strengthening rand and a drop in the global price of Brent crude oil. Between late August and late September, the rand improved against the US dollar, trading from R18.06 to R17.32 per dollar. Meanwhile, Brent crude prices fell from $78.80 to $71.97 per barrel in early September, further easing fuel import costs.

According to the Central Energy Fund (CEF), this combination of factors is expected to bring more price relief in October. Projections suggest petrol 95 could drop by R1.28 per litre, while petrol 93 may decrease by R1.19 per litre. Diesel users also stand to benefit, with price cuts of up to R1.11 per litre expected.

More Savings Ahead

These ongoing reductions are good news for South Africans grappling with rising living costs. For drivers like Mbele, the savings offer welcome respite. “I can’t remember the last time I spent this little on fuel. It’s really helping with my household expenses,” he adds.

However, the CEF cautions that these price predictions are not yet final. Official adjustments will be announced in the first week of October when South Africans will learn whether the expected cuts will materialize.

In the meantime, motorists can take comfort in the recent price drops, with more potentially on the way. As the fuel market remains volatile, the current trend offers a glimmer of hope for drivers feeling the pinch of inflation.

A Broader Economic Impact

The recent decline in fuel costs is not just benefiting individual motorists. It’s having a broader impact on the South African economy, where fuel prices influence transport costs and the prices of goods. Lower petrol prices could help ease inflationary pressures, offering relief not just at the pump, but in everyday expenses.

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