Get pumped, South Africa! Relief on way for motorists, says AA

The Automobile Association (AA) of South Africa predicts that motorists can expect a fuel price drop in November when the Department of Mineral Resources and Energy (DMRE) officially announces fuel adjustments, as unaudited data point to price decreases.

According to the AA, preliminary data from the Central Energy Fund (CEF) indicate a promising drop of up to R2 per litre of petrol and about R1 for diesel.

This was owing to a significant decrease in international product prices during October – the primary driver behind the impending reductions. Although the value of the rand has weakened, it said, its impact on these price adjustments is relatively minor in the broader context. This also holds true for the price of diesel and illuminating paraffin.

At the beginning of October 2023, the DMRE announced a fuel price “adjustment”, blaming a range of local and international factors – mainly related to the price of crude oil, the rand-dollar exchange rate and the Slate Levy.

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As per the current data, the anticipated drop in petrol prices includes ULP95 dropping by about R2.01 per litre and ULP93 by R1.96 per litre. A significant decrease of about R1.08 per litre of diesel is expected, while illuminating paraffin is set for a reduction of 98 cents per litre.

The AA underscores the importance of the cuts, especially after three consecutive months of considerable price hikes.

In October 2023, price hikes took the price of ULP95 petrol above R25 per litre in Gauteng and above R24 per litre on the coast – for the first time since August 2022.

“After three months of significant increases, both petrol and diesel prices are expected to fall below the R25/l mark again. This is good news for motorists, consumers and the economy, especially heading into the end of the year. These decreases come as South Africans continue to struggle financially and will be welcome relief from the substantial increases seen since August. In July, a litre of ULP95 cost R22.46 (inland). Should the expected decrease materialise, the November price for a litre of ULP95 inland will cost around R23.68,” the AA noted.

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The retail price of petrol is regulated by the government and adjusted every  first Wednesday of the month. The prices of petroleum products (petrol, diesel and illuminating paraffin) is calculated daily by the CEF on behalf of the DMRE. DM