Slight drop in fuel price brings relief to motorists’ pockets

By Se-Anne Rall 9m in the past

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DURBAN – A slight drop in the petrol price is anticipated to carry much-needed relief to motorists’ pockets. A litre of 95 and 93 octane petrol is anticipated to price round 9 cents much less whereas the price of diesel will drop by 30c and paraffin 23c.

The price lower is due to the slight appreciation of the rand, the Mineral Resources and Energy Department says.

Mancosa senior finance and economics lecturer Meshel Muzuva warned that buyers have to be conscious that there would at all times be the instability of native and international economies which may have an effect on fuel costs.

He stated worldwide petroleum costs had been secure, permitting the rand to leverage its latest power. That had led to a decrease contribution to the fundamental fuel costs on petrol, diesel and illuminating paraffin.

“The fuel price decrease will bring some relief to cash-strapped South Africans. Financially burdened South African consumers can thus expect a breather in May from the series of fuel price increases earlier in the year. Users of paraffin will be delighted with the news as we are approaching cold winter months,” he stated.

Muzuva stated the impression of the lower in the price of paraffin would end result in poorer households witnessing a lower in their price of residing.

Consumers would additionally profit from the decrease costs of transport and fuel as it will enhance their disposable revenue, enabling them to spend extra on different items.

“Nevertheless, consumers should continue to be worried, given the ongoing instability in both local and global economies which may point to future uncertainty around petrol prices in the coming months.

“Global financial markets do impact the rand, so the weakening of the rand in future could push the fuel price further to unsustainable levels and bite the little income at the disposal of households,” Muzuva stated.


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