September brings welcomed cuts at the pump for South African motorists, if you drive petrol.
The Central Energy Fund CEF reports that Petrol 93 is set to fall by 10 c/l, and Petrol 95 by 5 c/l, adding to the 28 c/l drop seen in early August, as reported by the Daily Investor . However, diesel users face a sting: Diesel 0.05 is expected to climb by 12 c/l, and Diesel 0.005 by 10 c/l, as supply remains tight while northern hemisphere refineries struggle to meet demand.
The latest CEF data attributes falling petrol prices to slumping global oil prices and a strengthening rand against the US dollar, a one-two punch offering much-needed relief. Diesel, on the other hand, bucks the trend due to supply constraints.
Oil markets have softened recently, driven largely by geopolitical developments, particularly, the announcement that the US president plans to meet with Russian leadership in a bid to end the Ukraine conflict. A resulting peace agreement could bolster global oil supply and drive prices even lower. Additionally, OPEC is slowly easing production restrictions to retain market share, while fears of slowing global growth stoked by tariffs undermine demand, all contributing to lighter fuel prices.
Despite South Africa's own economic headwinds, the rand has held its ground, though this strength owes more to the weakening US dollar than local fundamentals. Mounting US debt now over US36 trillion, record deficits, and waning confidence in Treasury instruments have pushed global investors toward safer havens like Europe, Japan, and Switzerland. This shift indirectly boosts emerging-market currencies like the rand, helping to tame inflation and attract capital, if sustained.