The Department of Mineral Resources said 93 octane and 95 octane petrol will decrease by 92 cents a litre. The wholesale price of 0.05% sulphur diesel will fall by 79 cents and 0.005% sulphur diesel will fall by 105 cents. The cost of illuminating paraffin will decrease by 103 cents.
These reductions are more substantial than the AA’s mid-month projections. “The reason for this welcome news is the perfect combination of a strengthening rand-dollar exchange rate since mid-August and the significantly lower international oil prices that fell in mid-August. This has increased the over-recovery on fuel prices during the review period,” said the AA.
The cumulative impact of the last four price drops is substantial. For 93 octane petrol, the reductions amount to about R2.42 a litre, resulting in a total saving of about R121 when filling a 50-litre rank.
In addition to the fuel price decreases for September, the fuel retail margin increase takes effect on Wednesday.
Gwede Mantashe, the Minister of Mineral Resources, has approved an increase of 5.3 cents per litre to accommodate the wage increase for forecourt employees agreed by the Motor Industry Bargaining Council.
“Lower fuel prices are good news for all consumers. Besides the immediate impact of purchasing cheaper fuel, input costs across various sectors are not affected by higher fuel costs,” said the AA.
“At a time when most South Africans are still struggling to make ends meet, this is welcome news for everyone.”
