The South African Petroleum Retailers Association says the relief at the pumps will provide much-needed breathing room for both businesses and individual consumers, particularly following the recent interest rate decreases. | Henk Kruger/ Independent Newspapers
Durban — The South African Petroleum Retailers Association (Sapra) has welcomed the fifth consecutive fuel price decrease, saying lower fuel prices put more disposable income in consumers’ pockets.
Sapra’s statements come after Department of Mineral and Petroleum Resources Minister Gwede Mantashe announced the adjustment of fuel prices with effect from October 2.
Based on current local and international factors, the fuel prices for October 2024 will be adjusted as follows:
Sapra, a member of the Retail Motor Industry Organisation (RMI), said South African consumers and businesses will benefit from yet another decrease in fuel prices.
“This marks the fifth consecutive fuel price decrease, which is a highly 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,” said Sapra chairperson Henry van der Merwe.
“Lower fuel prices put more disposable income in the pockets of consumers. This could stimulate broader economic activity as consumers may allocate more funds to goods, services, and leisure, thereby boosting retail sectors.”
Van der Merwe said hopefully it will help ease some inflationary pressures. Fuel is a key input in producing and transporting goods.
He said decreased fuel prices can help lower production costs, resulting in a reduction in the prices of goods and services which will help curb inflationary pressures, creating a more stable economic environment.
He also said the continued decreases are 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,” Van der Merwe said.
He said 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.
“We welcome the latest relief measures which should be viewed as part of a larger national and global economic trend and remain committed to representing the interests of petroleum retailers while keeping consumers informed,” Van der Merwe added.
The United Association of South Africa (UASA) also welcomed the announcement of the lower fuel price.
UASA spokesperson Abigail Moyo said: “The fifth consecutive month of fuel price cuts brings us back to prices last seen before the Russia-Ukraine war started in 2022, giving consumers some cash back after hitting the pumps.
“UASA is pleased with the current economic outlook, which has finally turned to favour workers, with the Consumer Price Inflation lowering to workers’ affordability target band. The first repo rate cut in four years also recently lessened workers’ household expenses.”
Moyo said the overall cost of living has become a nightmare for average consumers, and such relief brings hope for higher consumer spending.
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