Fuel price drop brings hope for struggling South Africans — petroleum retailers association

The South African Petroleum Retailers Association says the relief in the form of lower fuel costs is huge news this month. Picture: Tumi Pakkies Independent Newspapers

The South African Petroleum Retailers Association says the relief in the form of lower fuel costs is huge news this month. Picture: Tumi Pakkies Independent Newspapers

Published Aug 7, 2024

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Durban — The South African Petroleum Retailers Association (Sapra) has welcomed the continued drop in fuel prices, adding that it is good news for cash-strapped South Africans.

The Department of Mineral Resources and Energy announced the adjustment of fuel prices from August 7.

Based on current local and international factors, the fuel prices for August 2024 will be adjusted as follows:

  • Petrol 93 (ULP & LRP): Fifteen cents per litre (15.00 c/l) decrease
  • Petrol 95 (ULP & LRP): Fifteen cents per litre (15.00 c/l) decrease
  • Diesel (0.05% sulphur): Twenty-eight cents per litre (28.00 c/l) decrease
  • Diesel (0.005% sulphur): Seventeen cents per litre (17.00 c/l) decrease
  • Illuminating paraffin (wholesale): Twenty-two cents per litre (22.00 c/l) decrease
  • SMNRP for IP: Twenty-nine cents per litre (29.00 c/l) decrease
  • Maximum LPGas Retail Price: Fourteen cents per kilogram (14.00 c/kg) decrease.

Henry van der Merwe, the chairperson of Sapra, – which represents the interest of numerous petroleum retailers in South Africa and is a proud association of the Retail Motor Industry Organisation – said the drop in fuel prices reflects the rand’s appreciation against the US dollar during the period under review and the much lower oil price. The average rand/US dollar exchange rate for the period June 28 to August 1 was R18.2360 compared with R18.4439 during the previous period. This led to a lower contribution to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 13.86 c/l, 13.80 c/l, and 14.01c/l, respectively.

“Fluctuating fuel costs impact every sector of society as they directly translate into higher/lower operational costs for businesses and impact the cost of living for consumers. Small businesses are often hardest hit when fuel goes up, as are commuters. The relief in the form of a decrease in fuel costs is therefore tremendous news this month,” Van der Merwe said.

He said the association would like to see this trend continue as the fuel pumps are one sector of the economy where consumers can see they are paying less.

He added that any savings for South Africans now is significant.

“We hope consumers will be lined up at the pumps tomorrow, August 7, to take advantage of the fuel savings and at last have a second month with a little more money left in the household or business budget.”

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