Durban — Civil rights organisation People Against Petrol and Paraffin Price Increases (Pappi) said the decision by the Department of Mineral Resources and Energy to lower the price for all grades of petrol was welcome relief for motorists.
This was after Mineral Resources and Energy Minister Gwede Mantashe announced a drop in the fuel price, effective from midnight on Tuesday.
However, Pappi national convenor Visvin Reddy said the 10c and 15c a litre increase in the price of diesel would have far-reaching implications for public transport and the freight industries.
He said this was the third consecutive downward adjustment in petrol prices.
“It is still over R22 a litre, which is ridiculously high and unaffordable to most South Africans. The announcement is not one to celebrate,” he said.
Mantashe said the fuel price adjustments were due to lower crude oil prices, adding the average Brent crude price had decreased from $94 (about R1 678) per barrel to $89.79 during the period under review. He said the other main contributing factor was lower demand from China.
The release of crude oil stocks by International Energy Agency member countries and the US assisted in supplementing tight supply and in keeping the prices lower.
Saudi Arabia was also cutting its oil prices to compete with Russia, which was now selling its oil at lower prices.
Oil prices were also dropping amid fears of a global recession that would affect the demand for finished products. On international petroleum product prices, Mantashe said high demand and continued low supply of diesel had affected diesel prices.
He said petrol prices had decreased, but at a lower level compared to the previous period as a result of lower inventories emanating from the routine refinery maintenance season in the northern hemisphere.
Reddy said: “It was through the Pappi protests that the government will dare not use fuel savings to feed the fiscus.
“Instead, all South Africans benefit through price reductions. A recent survey showed that a basket of groceries has increased on average by R600 per month; coupled with the fact that our country has the highest unemployment rate in the world, these fuel prices are way too high.
“The cost of petrol and diesel impacts everyone, but the hardest hit are the poorest of the poor. Food and public transport prices have gone through the roof. This means that the unemployed cannot afford to get to job interviews and more families are living in abject poverty.”
He said Pappi had submitted proposals to the government, which, if implemented, would see fuel prices reduced by more than 50%.
“We reiterate our call to nationalise Sasol, buy crude oil from Russia and deregulate the price of petrol,” he said.
Daily News