Durban - The huge price drops for petrol and diesel, which will be implemented tomorrow, have been widely welcomed.
Energy Minister Gwede Mantashe announced on Friday that there would be decreases in the prices of both grades of petrol, as well as diesel.
The price of petrol (93 and 95 ULP & LRP) will drop by R2.06/litre, while the price of diesel (0.05% sulphur) will drop by R2.68/litre and diesel (0.005% sulphur) will drop by R2.80/litre.
The AA, economists, SA National Taxi Council (Santaco) and Road Freight Association (RFA) welcomed the announcement.
Gavin Kelly, RFA CEO, said: “The decreases in these price ranges is very good news, both for the consumer directly and indirectly, and for the economy.”
Kelly said that with the fuel price drop there would be a marginal increase in the return on investment for all those who are economically active, and small businesses would have a chance to grow.
AA spokesperson Layton Beard said the decreases would take fuel prices back to levels last seen in March last year.
“These decreases will not take fuel prices to levels seen in January 2022 but will, nonetheless, go a long way to alleviating the fuel price burden – and its associated impact on other prices – felt by millions of South Africans. For many travellers who are on holiday, this is also good news as it will reduce expenses on the return leg of their journeys.”
Santaco KZN spokesperson Sifiso Shangase said: “It came at the right time as it is the beginning of the year. We will be able to have a bit of a surplus (in earnings), which will enable us to enrol our kids at institutions of learning. We will be able to purchase uniforms and pay school fees and other expenses.”
Professor Irrshad Kaseeram, of the University of Zululand’s Economics Department, said: “Most consumers are in need of extra funds given the overspending over the festive period. Some people are targeting off-peak holiday trips and lower fuel costs will bring relief. Parents who have to budget for school gear and stationery will also be overjoyed, while trucking companies and taxi businesses will enjoy savings.”
Professor Bonke Dumisa, an independent economic analyst, said decreases in petrol and diesel prices would have a big impact on the economy.
“It is a welcome relief that this is the second major drop in diesel. Combined with the December decrease, it is almost a R4 decrease in the price of diesel. We must remember that food that we eat and goods we use are transported by trucks that use diesel, therefore this price drop could lead to a possible reduction in food and goods prices and will also help reduce inflation.”
Dumisa said the fuel price decreases could be attributed to a stronger rand and a drop in the price of Brent crude oil.