The Road Freight Association has welcomed the drop in fuel prices, saying the move will have a positive effect on transport costs and the supply chain.
On Tuesday midnight, the price of fuel dropped by R2.35 a litre for ULP95, R2.18 a litre of ULP93.
Gavin Kelly, the association’s CEO, said the effects of the recent decrease on the logistics chain will be felt in the coming quarter, noting that it will certainly make life slightly easier for consumers towards the end of the year.
“With fuel prices having dropped, 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,” said Kelly.
“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.
“There would be a greater positive 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.”
He called on 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.
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