Fuel prices set for another significant drop

South African motorists can look forward to a substantial drop in fuel prices as summer approaches, according to the Automobile Association (AA).

Based on mid-month data from the Central Energy Fund (CEF), the AA reports that the cost of petrol, diesel and illuminating paraffin is set to decrease significantly, continuing the downward trend in fuel prices seen this year.

It is estimated that motorists could see prices for ULP93 decrease by approximately R1.18 per litre, while ULP95 is expected to drop by around R1.26 per litre.

Diesel prices are predicted to fall by R1.10 per litre, with illuminating paraffin seeing a reduction of around R1.04 per litre. The forecasted drops will return petrol prices to levels last seen in March and April 2022, offering significant relief to consumers.

“These decreases are positive and will ease pressure on our economy and consumers,” it said.

“Of course, this is only one indicator, and we cannot ignore higher interest rates and food prices but a decrease in fuel costs will make a difference to many.”

The association noted that the final fuel price adjustments for October could change before they are officially confirmed by the Department of Mineral Resources and Energy. However, it is optimistic that the current forecast indicates significant cuts. – moneyweb.co.za