The South African Petroleum Retailers Association (Sapra), which is a member of the Retail Motor Industry Organisation (RMI), has said that South African consumers and businesses will benefit from yet another decrease in fuel prices.
Sapra chairperson Henry van der Merwe said the Department of Mineral Resources and Energy has confirmed a significant reduction in the prices of petrol and diesel, effective from Wednesday.
“This marks the fifth consecutive fuel price decrease, which is a highly positive development for our economy, especially in these challenging times as we approach the last quarter of the year. The relief at the pumps will provide much-needed breathing room for both businesses and individual consumers, particularly following the recent interest rate decreases.”
Van der Merwe added that fuel price adjustments for October 2024: include:
- Petrol 93 ULP & LRP: 106.00 cents per litre decrease
- Petrol 95 ULP & LRP: 114.00 cents per litre decrease
- Diesel 0,05% Sulphur: 114.00 cents per litre decrease
- Diesel 0,005% Sulphur: 112.00 cents per litre decrease
Illuminating Paraffin:
- Wholesale price: 111.00 cents per litre decrease
- Single Maximum National Retail Price (SMNRP): 148.00 cents per litre decrease
- LPG: 23.00 cents per kilogram increase in the maximum retail price
Van der Merwe said that lower fuel prices put more disposable income in the pockets of consumers.
“This could stimulate broader economic activity as consumers may allocate more funds to goods, services and leisure, thereby boosting the retail sector. Hopefully it will also help ease some inflationary pressures. Fuel is a key input in the production and transportation of goods. Decreased fuel prices can help lower production costs, resulting in a reduction in the prices of goods and services which will help curb inflationary pressures, creating a more stable economic environment.”
Van der Merwe added that the continued decreases were helping to boost business confidence, particularly for those businesses reliant on fuel-intensive operations, such as the logistics, transport and manufacturing industries. “The ongoing reduction in fuel costs should impact operational expenses and could stimulate investment in other areas of the business, fostering growth and employment opportunities.”
Van der Merwe said consumers would be the big winners with petrol and diesel prices dropping by over 100c per litre. “They will experience significant savings when filling up their vehicles. We should also start to see these reductions translating into lower transport fares, benefiting those using taxis, buses or other forms of public transport.We welcome the latest relief measures, which should be viewed as part of a larger national and global economic trend and remain committed to representing the interests of petroleum retailers while keeping consumers informed.”
The Mercury