4 December 2023
Amid loadshedding, congestion at ports and a heatwave over large parts of South Africa, there is one bright spot for consumers: a significant reduction in the fuel price.
Dawie Maree, head of information and marketing at FNB, says unaudited figures show an over-recovery of just under R1 a litre for both grades of petrol and up to R2,29 a litre for both grades of diesel.
A decrease in prices can be expected next Wednesday, bringing relief at the pumps over the holiday period.
International fuel prices have dropped slightly after sharp increases in the middle of the year. The decrease means, among other things, cheaper diesel for producers, especially summer grain farmers who are still busy with plantings.
“However, farmers have already bought and paid for the diesel they will use now and in December, so the relief will only be for diesel purchased in December,” says Maree.
“The reduction in prices is also good for inflation expectations, especially regarding the direct and indirect transport component. The improved inflation expectations also mean we may have reached the turning point of the high interest rate.
“Remember, though, if the fuel price drops it doesn’t mean South Africans will immediately see a decrease in transport costs. That happens over time.”
