Durban — The organisation, People Against Petrol and Paraffin Price Increase (Papppi) said it would like to see a ripple effect of price decreases once the fuel price is reduced considerably on Wednesday.
The national convener of Papppi, Visvin Reddy, was commenting after the Department of Mineral, Resources and Energy announced the decrease in fuel prices.
The department said petrol (both 93 and 95 ULP and LRP) will decrease by 206 c/l (cents a litre). Diesel 0.05% sulphur is to decrease by 268.90 c/l. Illuminating paraffin (wholesale) will decrease by 193 c/l. SMNRP for IP will decrease by 258 c/l. Maximum LPGas retail price will increase 82 c/kg.
Commenting on data from the Central Energy Fund (CEF), the AA said these reductions are good news for all consumers and signal a positive start to fuel pricing for 2023, said the AA.
The AA stated that reductions are a result of a stronger average rand/US dollar exchange rate, and significant decreases to international product prices. While the stronger rand is contributing to the decreases, the data shows the movement to international product prices is playing the most substantial role to the forecast fuel price reductions.
“According to the data, petrol (both grades) will decrease by around R1.85/ litre, diesel will decrease by between R2.47/l and R2.59/l and illuminating paraffin will decrease by around R1.93/l. These reductions will bring the price of 95 ULP inland to around R21.57/l and R20.92/l at the coast, both prices close to those last seen in March 2022. The forecast reduction in the wholesale price of diesel will bring this fuel cost down to around R21.47/l.”
The AA added that these decreases would not take fuel prices to levels seen in January 2022 but would nonetheless go a long way to alleviating the fuel price burden and its associated impact on other prices felt by millions of South Africans.
The AA said for many travellers currently on holiday this is also good news, as it will “undoubtedly reduce expenses on the return leg of their journeys”.
Reddy said they would always welcome the reduction of fuel prices and that it would be good to see a decrease in other goods that also went up because of the petrol increase.
“We must remember that when fuel prices go up, food, transport and other things increase. Seeing a reduction in prices of all these things would be good for ordinary South Africans. If this reduction would not affect them, then it does not have much effect.”
Reddy added that the government should explore other alternatives so that fuel prices decrease even more, as much as there is this reduction, prices could go lower.
“The government needs to explore other alternatives, including the Sasol option or using coal to generate our fuel, that would assist a lot,” he said.
The South African National Taxi Council spokesperson in KwaZulu-Natal, Sifiso Shangase, said the decrease in fuel prices was good news to them as well as the industry, as they have “things to fix” since it is the beginning of the year.
“This is a good way to start the year and we will be able to catch a break with the reduction of fuel prices and to save some money as well,” he said.
Shangase added that as the taxi industry, they would review their prices in July because they could not reduce taxi fares every time petrol prices dropped.
Daily News