Winter has finally arrived and so has a respite in the fuel price as of Wednesday 5 June, just in time for families who will be looking forward to the upcoming school holidays.
Lebo Ramolahloane, Vice Chairman of the South African Petroleum Retailers Association (SAPRA), representing the interest of numerous petroleum retailers in South Africa and a proud association of the Retail Motor Industry Organisation (RMI), says motorists can look forward to a significant fuel decrease thanks to a strengthening Rand against the US Dollar and lower prices for Brent Crude Oil.
“This timely reduction not only benefits your wallet but also enhances the holiday experience, making travel and daily activities more affordable. “As retailers we are thrilled to see our customers get more value for their hard-earned money during this special time,“ says Ramolaholane.
The June decreases are as follows:
- ULP 95: R1.24 decrease
- ULP 93: R1.24 decrease
- 500ppm Diesel: R1.19 decrease
- 50ppm Diesel: R1.09 decrease
- Illuminating Paraffin: R1.07 decrease
- LP Gas: R1.35 per kilogram decrease
Ramolaholane says the reduction will also positively impact commuter costs and provide families with enhanced spending power. “With more disposable income, families are likely to spend more on local services and retailers. From dining at local restaurants to shopping at convenience stores, this increased spending supports the community and stimulates the local economy,” he says.
From a trade perspective, petroleum retailers anticipate increased foot traffic as fuel prices drop with more motorists visiting fuel stations, providing an opportunity for retailers to showcase additional services. “From convenience stores to on-site restaurants, these visits can lead to increased sales across various segments,” he says.
He says retailers play a crucial role in the community by offering essential services and products and during the upcoming holidays, this support becomes even more critical, helping families make the most of their time together.
While the direct benefits to families and retailers are evident, from a macro perspective the broader economic implications of the fuel price drop are equally significant:
“Lower fuel prices help reduce overall inflation by decreasing transportation and production costs, leading to more stable prices for a wide range of goods and services. Increased consumer spending also impacts economic growth by boosting economic activity, contributing to higher GDP growth. Businesses, including retailers, benefit from this uptick in economic activity.”
The reduction also provides exchange rate stability. “A stronger rand, contributing to the lower fuel prices, makes imports cheaper, improving the trade balance. However, political uncertainty remains a risk for currency stability,” he notes.
“We are committed to ensuring that our customers get the most value for their hard-earned money, making this holiday season one to remember. Enjoy the savings, support your local retailers, and make the most of the holiday season!” concludes Ramolaholane.
