This fuel price drop will bring the cost of a litre of 95 Unleaded petrol at the coast down to around R20.27, while those in Gauteng will pay in the region of R21.06. Picture: Doctor Ngcobo/African News Agency(ANA)
Cape Town - Yet another fuel price reduction predicted for tomorrow has been welcomed as good news for small businesses, consumers and motorists.
Month-end unaudited data from the Central Energy Fund (CEF) points to petrol price cuts of R1.13 for 95 Unleaded and R1.06 for 93 Unleaded, while diesel is expected to decrease by between R1.11 (50ppm) and R1.13 (500ppm).
This will bring the cost of a litre of 95 Unleaded petrol at the coast down to around R20.27, while those in Gauteng will pay in the region of R21.06.
The cheaper 93 Unleaded is expected to retail for R20.73.
The wholesale price of diesel should land around R17.82 at the coast and R18.58 inland.
It is the fifth month in a row that fuel prices have dropped substantially.
It also comes as the rand experienced a 20-month high, trading at around R17.06 against the dollar at 8.30am yesterday.
Cape Chamber of Commerce and Industry deputy president, Derryn Brigg, said any reduction in input costs is good news for business, particularly for small businesses with small margins.
“A significant reduction in input costs, such as this latest fuel price drop, is therefore a huge relief for the small business sector that has suffered stiff economic headwinds due to heavy inflation and soaring electricity prices.
“Cost relief in the form of lower fuel costs will add further momentum to positive business sentiment on the back of lower inflation and business-friendly signals from the Government of National Unity,” he said.
Brigg said while the Chamber unequivocally welcomes the price reduction, they remain concerned about energy costs and Eskom’s proposed tariff increase, which, if approved, has the potential to reverse the fuel saving.
“It is worth pointing out that South African entrepreneurs are still feeling vulnerable due to ongoing challenges in the business environment, as illustrated in the latest IMD World Competitiveness Yearbook, which noted an overall increase in entrepreneurial ‘fear of failure’ in 2024 compared to last year.
“Although reduced fuel costs will no doubt relieve some entrepreneurial jitters, it does not diminish the urgency required to proactively unlock the many other impediments to economic growth in general and small business development in particular.”
Cosatu provincial secretary, Malvern de Bruyn, said they welcomed the dropping of fuel prices.
“This is the fourth time we really welcomed it and we hope that this continues.
“We don’t want a scenario that after five (price decreases) they start to increase for the next six months and that we have seen it before.
“So we hope and pray that this will continue because I think the working class, as they are the ones who suffer the most,” De Bruyn said.
Automobile Association of SA (AA) spokesperson Eleanor Mavimbela said the expected decreases would provide additional relief to motorists.
“The cumulative impact of this fifth decrease is substantial and will see motorists paying fuel prices last seen in 2022.
“It's definitely good news for South African motorists, as they will be saving more at the pumps in October.
“Although fuel will be cheaper in October, we remain committed to advocating for a sustainable solution to mitigating high fuel costs and believe it is still necessary.
“The AA again calls on the government to urgently initiate a transparent review of the fuel price and, critically, to involve all role-players who have a stake in fuel pricing.”
SA Retailers Association chairperson Henry van der Merwe said the organisation was pleased that South Africans would benefit from yet another decrease in fuel prices.
“This marks the fifth consecutive fuel price decrease, which is a 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.
“Lower fuel prices put more disposable income in people’s pockets.
“This could stimulate broader economic activity as consumers may allocate more funds to goods, services, and leisure, thereby boosting retail sectors,” said van der Merwe.
He added that continuing decreases were also helping to boost business confidence, particularly for those businesses reliant on fuel-intensive operations, such as logistics, transport, and manufacturing.
“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.
“Consumers will be the big winners, with petrol and diesel prices dropping by over 100 cents 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,” Van der Merwe said.
sibuliso.duba@inl.co.za
Related Topics: