The Automobile Association (AA) has tabled its final fuel price outlook for September with a welcome reprieve anticipated come next week Wednesday (7 September).
Commenting on the latest unaudited data report by the Central Energy Fund, the AA said current projections point to a R2.18 per litre decrease in the price of 93 unleaded, R2.35 per litre for 95 unleaded, between 77 and 87 cents for diesel and 82 cents for illuminating paraffin.
Attributing the decrease to a weaker Rand and lower international oil prices, the association said while it welcomes the drop that will see 95 unleaded dip below R25 for the first time in months, it remains unmoved by its stance on the scrapping of government’s controversial general fuel price levy.
“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 in fuel prices is good news,” the AA said in a statement.
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“Although we are expecting fuel to be cheaper in September, we remain concerned about the overall high prices that affect all consumers. The price hikes in June and July will continue to affect the economy and 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”.
On the renouncing of the levy, the association stated that recent calls and protests by groups wanting the levy removed won’t solve the matter as this “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,” it concluded.