The Road Freight Association has welcomed the reports of large fuel price decreases, saying it is a welcome breath of good news.
Data indicates estimated decreases in the fuel price in the coming week as follows: R2.35 per litre for ULP95; R2.18 per litre of ULP93; 77c for 50ppm; and 87c for 500ppm.
Illuminating paraffin is also set to drop by an estimated 87 cents per litre.
The Road Freight Association said on Monday that any decrease in the cost of fuel – in particular larger decreases – will have a tremendously positive effect on transport costs and supply chains.
“While the price of fuel has dropped, the effects in 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 boot,” the association said.
South Africans will now pay less for fuel than they did in June 2022.
“This will go a long way to placing downwards 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”.
Gavin Kelly, chief executive of the Road Freight Association, said: “It must be remembered that fuel price fluctuations are driven by the cost of oil (fuel) on the international market and the rand/dollar exchange rate. Concerns remain around the effect global instability has on these two factors and the long-term effect high fuel prices will have on the South African economy.”
“There would be a greater positive/downwards) effect on freight logistics if the price of diesel was to drop as dramatically as petrol has, as the majority of road freight logistics is done with diesel vehicles,” Kelly said.
The association called on the government to speed up programmes to make South Africa less reliant on fuel imports, by improving or expanding Sasol and similar manufacturing processes, as well as ramping up the introduction of suitable and sustainable electric vehicle programmes.
BUSINESS REPORT