Durban — Lower fuel prices will bring relief to workers struggling to make ends meet.
That was according to the trade union United Association of South Africa spokesperson Abigail Moyo.
Moyo, who was reacting to a decrease in fuel prices, said: “The lower fuel price brings relief to workers struggling to make ends meet in the current economic circumstances.”
“We hope the lower prices of average international products such as petrol, diesel and illuminating paraffin continue for financially stressed workers, who wish to save a few rands for their household needs,” Moyo said.
Earlier this week, Mineral Resources and Energy Minister Gwede Mantashe announced the adjustment of fuel prices based on current local and international factors with effect from June 7, 2023.
The adjustments are as follows:
- Petrol (both 93 and 95 ULP & LRP): Seventy-one cents per litre (71.00 c/l) decrease.
- Diesel (0.05% sulphur): Eighty-four cents per litre (84.00 c/l) decrease.
- Diesel (0.005% sulphur): Eighty cents per litre (80.00 c/l) decrease.
- Illuminating Paraffin (wholesale): Forty-three cents per litre (43.00 c/l) decrease.
- SMNRP for IP: Fifty-eight cents per litre (58.00 c/l) decrease.
- Maximum LPGas Retail Price: Seventy-five cents per kilogram (75.00 c/kg) increase.
The Automobile Association said that while higher oil prices and the weaker Rand are reducing the expected decreases, fuel would still be cheaper in June than it was in May.
“In mid-May, we forecast decreases of around R1/l for petrol, around R1.30/l for diesel and around 60c/l for illuminating paraffin. However, the weakening Rand against the US Dollar, as well as increases in international product prices, have tempered those numbers. Based on unaudited data from the Central Energy Fund (CEF), petrol is now set to decrease by around 70c/l, diesel by around R1/l, and illuminating paraffin by around 40c/l,” the AA said.
“Increasing interest rates are adding enormous pressure on already embattled consumers in a weak economy. Many people are struggling to make ends meet, and any relief, even if it is slight, will assist consumers. The forecast decreases in the price of diesel are especially welcome given that this fuel accounts for significant input costs across all sectors, which are often passed on to consumers. A decrease to the price of this fuel is, therefore, welcome and timely.”
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