Sep 05, 2022 RFA, The Road Freight Association, Gavin Kelly, fuel price decreases
Reports of large fuel price decreases a breath of good news, says RFA
By Gavin Kelly – Chief Executive Officer: The Road Freight Association
Decreases in the fuel price on 07 September are as follows: R2.04 per litre for ULP93 and ULP95, 46c for 50ppm and 56c for 500ppm. Illuminating paraffin is set to drop by 82 cents per litre.
The Road Freight Association notes that any decrease in the cost of fuel - in particular larger decreases - will have a tremendous positive effect on transport costs and supply chains. Whilst the price of fuel has dropped, the effects into the logistics chain should be felt in the coming quarter and will certainly make life slightly easier for consumers towards the end of the year.
With fuel prices dropping, there should also be a boost for the local tourism industry to boot. South Africans will now pay less for fuel than they did in June 2022. This will go a long way to placing downward pressure on inflation as well as the cost of logistics within South Africa, which is one of the key drivers of the items measured in the "inflation basket".
It must be remembered that fuel price fluctuations are driven by the cost of oil (fuel) on the international market and the Rand/Dollar exchange rate. Concerns remain around the effect global instability has on these two factors and the long-term effect high fuel prices will have on the South African economy.
There would, obviously, be a greater positive/downward effect on freight logistics if the price of diesel was to drop as dramatically as petrol has, as the majority of road freight logistics is done with diesel vehicles.
The Association calls on the government to speed up programmes to make South Africa less reliant on fuel imports, by improving or expanding SASOL and similar manufacturing processes, as well as ramping up the introduction of suitable and sustainable Electric Vehicle programmes.
Mar 13, 2025 0
Mar 12, 2025 0