Good News for SA Drivers: Petrol and Diesel Prices Set to Drop in September

Cheaper fuel may be on the horizon

Motorists across South Africa may soon breathe a little easier at the pumps. Mid-month figures from the Central Energy Fund (CEF) suggest both petrol and diesel are on track for a price cut in September. The improvement is being driven by a mix of falling global oil prices and a rand that has edged stronger against the US dollar.

The latest CEF snapshot shows an over-recovery of between 8 and 15 cents per litre for petrol and between 33 and 35 cents per litre for diesel. Illuminating paraffin is also on track for a decrease of about 26 cents per litre.

If these trends hold until month-end, the inland petrol price for 93 octane could drop from R21.51 to R21.36, and 95 octane from R21.59 to R21.51. Diesel prices could fall by more than 30 cents per litre, with inland 0.005% wholesale diesel set to move from R20.04 to R19.69.

The global picture: oil prices slide

The biggest factor in this potential price drop is the international oil market. Prices have tumbled from around 75 dollars a barrel to 66 dollars this month, after briefly spiking to 85 dollars in June during the conflict between Israel and Iran.

US President Donald Trump’s recent wave of tariffs on major trade partners has dampened global demand for oil. A temporary truce in the US–China trade dispute has helped limit the damage, but OPEC+ producers have simultaneously increased supply. The double hit of weaker demand and higher supply has kept prices under pressure.

For South Africa, cheaper oil translates directly into lower basic fuel prices, giving the CEF its current over-recovery figures.

The rand’s role in the recovery

While oil prices have been doing the heavy lifting, the rand has also been playing its part. The local currency has gained ground this month as the US dollar weakened, a trend partly fuelled by investors shifting to gold as a safe-haven asset.

Gold, one of South Africa’s key exports, has also seen stronger prices this month, adding another boost to the rand. However, currency volatility remains a constant, and the exchange rate is still slightly negative, shaving about 3 cents per litre off the potential fuel price drop.

What happens next

The Minister of Mineral and Petroleum Resources will announce the official price changes at the end of the month, with adjustments taking effect in the first week of September.

For now, the mid-month data offers a welcome sign for households and businesses still adjusting to months of fluctuating transport costs. While global markets remain unpredictable, the current picture suggests that South Africans could soon be paying less to fill their tanks.

Also read: South Africa’s Economic Reform Push: 10% Complete, but the Hard Work Lies Ahead

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Source: Business Tech

Featured Image: BusinessLIVE