This year is getting off to a good start – for motorists at least.
Early data from the Central Energy Fund (CEF) points to a slight decrease in fuel prices in February due to rising international petroleum costs.
Petrol prices are expected to come down by as much as 25 cents a litre, while diesel is on track for a 50 to 60 cents per litre drop, reports IOL.
According to Abigail Moyo, spokesperson for the trade union Uasa, the recent fuel price cut will have consumers in “good spirits” as it will help increase their spending power elsewhere.
“Particularly parents of school-going children will be in good spirits as it will put more disposable income in their pockets, heightening their spending power.
“As most workers end their festive season and learners prepare to return to school, Uasa is pleased about the effect of the lower prices on South African pockets,” Moyo said.
However the Department of Energy has stressed that the daily snapshots were not predictive and did not cover other potential changes, like slate levy adjustments or retail margin changes, which were determined by the department at the end of the month, taking all variables into account.
An interest rate increase may put further pressure on burdened consumers.
The SA Reserve Bank (SARB) was expected to hike the repo rate in an attempt to anchor inflation, with expectations at the midpoint of the target range.
Fuel prices dropped significantly at the beginning of this month, with petrol going down by R2.06 a litre and diesel by R2.68 (500ppm) and R2.80 (50ppm).
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