While the fuel price drop is welcomed, transport associations want to see it reduced further to provide relief for motorists and businesses.
The biggest fuel drop, effective from midnight last night, is the first in two years, according to the Automobile Association of SA.
According to the department of mineral resources and energy, petrol has been slashed by R2.04 cents per litre, diesel by 56 cents while paraffin went down by 82 cents.
Motorists now fork out R23.07 cents per litre as compared to R25.42 last month.
The department said the fuel drop was driven by a decrease of the international Brent crude oil price which fell sharply by 10.5% month-on-month in August to $94 per barrel and strengthening of the rand against US dollar.
AA spokesperson Layton Beard said the decrease will provide some relief to motorists.
"Nevertheless, any decrease to fuel prices is good news. It is difficult to say if there is some sort of relief on the horizons for consumers because we look at two main factors that influence the fuel price, the international oil price and the second is the US dollar exchange rate which changes on a daily basis.
“Although we are expecting fuel to be cheaper in September, we remain concerned about the overall high prices which impact on all consumers. The price hikes in June and July will continue to impact the economy, and on 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,” he said.
CEO of the Road Freight Association, Gavin Kelly, said the decrease will have a tremendous positive effect on transport costs and supply chains. "Whilst the price of fuel has dropped, the effects into 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.
“With fuel prices dropping, there should also be a boost for the local tourism industry to reboot. 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."
National Taxi Alliance (NTA) spokesperson Theo Malele said: “We expected the ministry to do much more for the public transport. What would have made us even happier will be to see petrol dropping by R5 or more.
"But we are however cognitive of the Euro global challenges that we all are facing with regards to Russia and Ukraine.
“The fuel price structure needs a serious revision. There are too many taxes on to our fuel. And I think we may even do without some of them including the Road Accident Fund because there is no proper accounting.
"Just like any other business, this fuel drop should not raise hopes to consumers that taxi fares will also drop. We welcome the relief because it will make us meet our monthly financial obligations because it has not been easy.”
bambalelep@sowetan.co.za
Some relief for consumers as petrol price drops
But taxi fares won't decrease – National Taxi Alliance
Image: Vladyslav Starozhylov/123rf
While the fuel price drop is welcomed, transport associations want to see it reduced further to provide relief for motorists and businesses.
The biggest fuel drop, effective from midnight last night, is the first in two years, according to the Automobile Association of SA.
According to the department of mineral resources and energy, petrol has been slashed by R2.04 cents per litre, diesel by 56 cents while paraffin went down by 82 cents.
Motorists now fork out R23.07 cents per litre as compared to R25.42 last month.
The department said the fuel drop was driven by a decrease of the international Brent crude oil price which fell sharply by 10.5% month-on-month in August to $94 per barrel and strengthening of the rand against US dollar.
AA spokesperson Layton Beard said the decrease will provide some relief to motorists.
"Nevertheless, any decrease to fuel prices is good news. It is difficult to say if there is some sort of relief on the horizons for consumers because we look at two main factors that influence the fuel price, the international oil price and the second is the US dollar exchange rate which changes on a daily basis.
“Although we are expecting fuel to be cheaper in September, we remain concerned about the overall high prices which impact on all consumers. The price hikes in June and July will continue to impact the economy, and on 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,” he said.
CEO of the Road Freight Association, Gavin Kelly, said the decrease will have a tremendous positive effect on transport costs and supply chains. "Whilst the price of fuel has dropped, the effects into 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.
“With fuel prices dropping, there should also be a boost for the local tourism industry to reboot. 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."
National Taxi Alliance (NTA) spokesperson Theo Malele said: “We expected the ministry to do much more for the public transport. What would have made us even happier will be to see petrol dropping by R5 or more.
"But we are however cognitive of the Euro global challenges that we all are facing with regards to Russia and Ukraine.
“The fuel price structure needs a serious revision. There are too many taxes on to our fuel. And I think we may even do without some of them including the Road Accident Fund because there is no proper accounting.
"Just like any other business, this fuel drop should not raise hopes to consumers that taxi fares will also drop. We welcome the relief because it will make us meet our monthly financial obligations because it has not been easy.”
bambalelep@sowetan.co.za
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