CAPE TOWN: The oil crisis tumbled many economies but it seems to be no consensus internationally on the level at which fuel prices will stabilize in the medium term, but the current situation is extremely positive for South African consumers and business owners, the Automobile Association (AA) said here the other day.
“International petroleum prices have continued their steep drop and not even a gradual appreciation in the rand/dollar exchange rate has been able to spoil the party,” the organization said in a statement.
The Central Energy Fund announced that the 95 petrol price will drop by R1.23 a liter and the 93 petrol price by R1.27 a liter here the other day.
Coastal petrol users will pay R10.78 per liter for 93 petrol and R10.83 per liter for 95 petrol, while Reef users will pay R11.02 per liter for 93 petrol and R11.24 per liter for 95 petrol.
The price of diesel would decrease by between R1.04 and R1.05 per liter.
The price of illuminating paraffin would decrease by R1.44 per litre.
Liquefied petroleum gas would decrease by R2.10/kg.
In December the retail prices of both grades of petrol, the wholesale prices of both grades of diesel and illuminating paraffin and the maximum retail prices of LP gas decreased as well.
The decrease in the prices of petrol and diesel will bring some respite to deeply indebted consumers, according to Debt Rescue CEO Neil Roets.
He hoped the retail sector takes cognisance of this reduction and that it will be reflected in lower prices for all goods and services once the price decrease has worked its way through the system.
He said while the price reduction was to be welcomed, consumers should not see this as an opportunity to stack up even more debt.
