Fifth consecutive decrease signals relief for both business and consumers
The South African Petroleum Retailers Association (SAPRA), a proud member of the Retail Motor Industry Organisation (RMI), is pleased to announce that South African consumers and businesses will benefit from yet another decrease in fuel prices. The Department of Mineral Resources and Energy has confirmed a significant reduction in the prices of petrol and diesel, effective from Wednesday, 2 October 2024.
Henry van der Merwe, Chairman of SAPRA, noted, "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."
Fuel Price Adjustments for October 2024:
- Petrol 93 ULP & LRP: 106.00 cents per litre decrease
- Petrol 95 ULP & LRP: 114.00 cents per litre decrease
- Diesel 0,05% Sulphur: 114.00 cents per litre decrease
- Diesel 0,005% Sulphur: 112.00 cents per litre decrease
Illuminating Paraffin:
- Wholesale price: 111.00 cents per litre decrease
- Single Maximum National Retail Price (SMNRP): 148.00 cents per litre decrease
LPG: 23.00 cents per kilogram increase in the maximum retail price “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,” says van der Merwe. Hopefully it will also help ease some inflationary pressures. Fuel is a key input in the production and transportation of goods. He says 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.
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.
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, benefitting those using taxis, buses, or other forms of public transport,” he says.
Van der Merwe concludes, “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.”
