Consumers advised to spend wisely ahead of fuel cut predictions

While further cuts in fuel prices have been predicted for the start of the new year easing financial pressure, consumers have been urged to still spend wisely this festive season.

According to the AA, motorists can expect a significant drop in both grades of petrol, diesel, and illuminating paraffin prices, data from the Central Energy Fund shows.

“According to the data, ULP93 will decrease by around 68 cents/litre, and ULP95 will decrease by 82c/l. Diesel is set to decrease considerably by around R1.50/l with illuminating paraffin also decreasing by around R1.42/l. The forecast reductions in the wholesale price of diesel will bring this fuel cost down to around R20.32/l inland, coming in at a price lower than the same time last year,” the association said.

They explained that the reductions could be attributed to the significantly lower international product prices.

While the rand has not been performing well against the US dollar, data indicated that the movement of international product prices was playing the most substantial role in the forecast reductions.

“These decreases will go a long way to alleviating the fuel price burden and its associated impact on other prices felt by millions of South Africans. For many travellers who will be going on holiday this is also good news as it will undoubtedly reduce expenses on the return leg of their journeys,” said AA.

Cosatu national spokesperson Matthew Parks hailed the predicted fuel cut saying any decrease in the price of petrol, diesel and paraffin was welcomed as this provided relief to the economy and the workers and commuters who have felt the pain of a spike in the cost of living.

United Association of South Africa (UASA) spokesperson Abigail Moyo said the decline in the consumer price inflation (CPI) was mainly driven by the 5.5% decrease in fuel prices which put some money back in workers’ pockets.

Cape Times