RFA welcomes large petrol price drop this week

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After unbearable petrol price hikes, cash-strapped motorists are expected to get much-needed relief at the pumps.

The Central Energy Fund’s latest data predicts 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.

Many industries including the Road Freight Association (RFA) have welcomed this week’s expected drop in the price of petrol.

RFA Chief Executive Officer Gavin Kelly said any decrease in the cost of fuel – in particular larger decreases – will have a tremendously positive effect on transport costs and supply chains.

“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.”

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.

Meanwhile, the Automobile Association (AA) said while the price of fuel is expected to be cheaper in September, it remains 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,” the AA said.

Faizel Patel/The Citizen