Fuel prices in South Africa will be slashed down on 7 September 2022 bringing much-needed relief to motorists.
Here are the fuel prices for September from the Central Energy Fund (CEF).
Both grades of petrol – 93 and 95 octane – will decrease by R2.04 per litre while the price of both grades of diesel (0.05% and 0.005% sulphur) will drop by 56.34 cents per litre and 36.34 cents per litre respectively while the price of illuminating paraffin will be cut by R1.09 per litre. The price of LP gas will be R1.65 cents lower per kg.
Fuel prices
95 petrol R23.38
93 petrol R22.95
0.05% diesel R23.96
0.005% diesel R24.16
Illuminating paraffin R17.33
The fuel price cuts for September will certainly be welcomed by motorists who endured brutal fuel price increases in recent months.
The Automobile Association of South Africa (AA) commented, “These decreases are certainly welcome and will provide some relief to motorists. Considering the expected decrease to ULP95, for instance, the price for this fuel will drop from its current R25.42/l to R23.07/l. This is cheaper than the June price of R24.17/l but still significantly higher than R21.84/l May pricing. It is also way off the January pricing of R19.61/l. Nevertheless, any decrease to fuel prices is good news”.
The expected reductions are predominantly driven by lower international petroleum prices despite the ongoing weakness in the Rand/Dollar exchange rate.
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“Although we are expecting fuel to be cheaper in September, we remain concerned about the overall high prices which impact on all consumers. The price hikes in June and July will continue to impact the economy, and on the financial situation of all South Africans. A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes” says the AA.
The AA further reiterates its call on the South African government to initiate a transparent review of fuel prices in an effort to find a solution. The AA believes that scrapping the General Fuel Levy (GFL) is not the solution.
Commenting on the matter, the AA says, “We note the calls by those who say this is a way of reducing the fuel price but in our view this will not solve the problem; it will simply force government to find alternative ways to collect the revenue generated by this tax. Instead, the structure and composition of the fuel price must be considered, along with a deeper interrogation of how government currently allocates its funds”.
RFA welcomes fuel price decreases
The Road Freight Association (RFA) said any decrease in the cost of fuel – in particular larger decreases – will have a tremendously positive effect on transport costs and supply chain.
“Whilst the price of fuel has dropped, the effects on the logistics chain should be felt in the coming quarter and will certainly make life slightly easier for consumers towards the end of the year.”
RFA Chief Executive Officer Gavin Kelly says with fuel prices dropping, there should also be a boost for the local tourism industry.
“South Africans will now pay less for fuel than they did in June 2022. This will go a long way to placing downward pressure on inflation as well as the cost of logistics within South Africa, which is one of the key drivers of the items measured in the “inflation basket”.
The Association has called on the government to speed up programmes to make South Africa less reliant on fuel imports, by improving or expanding Sasol and similar manufacturing processes, including ramping up the introduction of suitable and sustainable Electric Vehicle (EV) programmes.
