The price of unleaded petrol 93 and 95 will be cut by 92c a litre. Picture: David Ritchie/Independent Newspapers Archive
Trade union Uasa and the AA have welcomed the reduction in the fuel price which came into effect on Wednesday.
Abigail Moyo, Uesa spokesperson, said the lowest fuel prices since early last year kicked in at midnight.
“The adjusted prices announced by the Department of Mineral Resources and Energy yesterday translate to a fourth consecutive relief for consumers. This will significantly improve workers’ household expenses and cost-of-living challenges.”
Moyo added that at midnight, the price of unleaded petrol 93 and 95 will be cut by 92c a litre.
“Wholesale diesel prices will be lowered by R1.05 (0.005% sulphur) and 79c (0.05% sulphur). The wholesale price of illuminating paraffin will be cut by R1.03/litre. LPGas will decrease by 10c per kg.”
Moyo said the price drop, combined with the inflation rate of 4.6% moving closer to the SA Reserve Bank’s target level of 4.5%, signals hope for further inflation ease and a much-anticipated interest rate cut by the South African Reserve Bank (SARB).
“The next Monetary Policy Committee meeting is scheduled for September 19. Uasa is pleased with the financial relief and hopes the trend continues to bring relief to workers during the remainder of the year.”
AA spokesperson Layton Beard said it was great news that the fuel price had dropped again for the fourth consecutive month.
“The reason for this welcome news is the perfect combination of a strengthening rand/US dollar exchange rate since the middle of August, and significantly lower international oil prices, which dipped around mid-August and increased the over recovery on the fuel prices in the period under review.”
Beard added that the cumulative impact of the last four decreases is substantial.
“Considering, for instance, ULP93 Inland, the decreases amount to around R2.44/litre which in total will bring about a saving of around R122 on a 50/litre petrol tank.
“In addition to the predicted fuel price decreases for September, consumers should expect the fuel retail margin increase that will come into effect next month. The Minister of Mineral and Petroleum Resources, Gwede Mantashe, has approved an increase of around 5c/litre to the fuel retail margin which kicks in with the official adjustment for September.”
Beard said that lower fuel prices are good news for all consumers.
“Apart from the immediate impact of buying cheaper fuel, input costs across various sectors are not impacted by higher fuel costs. At a time when most South Africans are still struggling to make ends meet, this is welcome news for all.”
Beard added that motorists wanting to fully benefit from lower fuel prices must also ensure their vehicles are in good mechanical condition, as this ensures better fuel economy.
“A vehicle that is properly serviced and maintained, and whose tyres are inflated according to manufacturer’s specifications, will have better fuel usage than a vehicle that isn’t properly maintained.”
THE MERCURY