Motorists Receiving Some Relief As Fuel Price Expected To Drop



Motorists around the country will welcome the latest data from the Central Energy Fund (CEF) which indicate a significant drop in the price of fuel on the cards. This will be the second consecutive month that the price of petrol has declined.




The Central Energy Fund's (CEF) latest unaudited data indicates that September will see significant reductions to fuel prices. 

These estimates will come as a welcomed relief as South African motorists have faced record high fuel prices which impacted many aspects of their lives. 

It is estimated that the price of a litre of 93 Octane petrol could decrease by as much R2.18c while 95 Octane petrol could decline by as much as R2.35c per litre. The price of a litre of diesel would decrease by 87c while the price of paraffin could be reduced by 82c. 

The price of petrol is determined by several factors including the price of a barrel of crude oil, the currency to US dollar exchange rate and levies. And while the Rand weakened against the US dollar, other factors remained favourable and will see consumers pay less for fuel. 

The Automobile Association (AA) says while they welcome the reduction in the fuel cost, a sustainable solution to mitigating rising fuel costs remains important. They warned that until this solution is found, citizens will be at the mercy of future price hikes. 

The AA's Layton Beard says that a decrease in the fuel price will also filter through to consumers through the declining costs of goods and services. 

However, this will not immediately appear as businesses won’t immediately decrease these prices after facing steep increase in input costs over the past few months. 

“It [fuel price increases] impacts on every single consumer in the country because of those input costs and how they filter into other goods and services that we use so absolutely correct it's good news but certainly the effects of the previous increases will continue to filter into our economy,” explained Beard. 

Beard adds that greater understanding of what comprises the fuel price is needed to find sustainable solutions to decrease the cost of petrol, and by extension, the cost of living in South Africa. This as experts have warned that simply reducing petrol prices won't reduce poverty.





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