South African motorists can expect significant relief at the pumps, with the Central Energy Fund (CEF) indicating an over-recovery of more than R1.00 per litre for petrol and diesel. If confirmed, this will result in a R4.60 reduction in petrol prices since October 2023, bringing petrol 95 down to R21.06 per litre and diesel (0.05%) to R18.59.
Notable price changes are anticipated for October 2024 compared to October 2023:
- Petrol 93: R25.22 to R20.74 (-R4.48)
- Petrol 95: R25.68 to R21.06 (-R4.62)
- Diesel 0.05%: R25.02 to R18.48 (-R6.54)
- Diesel 0.005%: R25.22 to R18.59 (-R6.63)
These reductions are attributed to declining global oil prices, which have fallen from $94 to $74 per barrel, influenced by economic slowdowns and limited action from OPEC. The rand has also shown signs of improvement despite being generally weaker against the US dollar.
Investment Strategist Izak Odendaal notes that lower oil prices are helping to reduce inflation, with petrol inflation potentially dropping to around -20% year-on-year, which could lower overall inflation by about one percentage point. The official price changes will be announced by the Department of Petroleum and Mineral Resources and take effect on Wednesday, October 2.