Lebo Ramolahloane, vice-chairperson of the SA Petroleum Retailers Association (Sapra), which represents the interests of several petroleum retailers in South Africa, has stated that motorists should expect a considerable fall in fuel prices.
Ramolahloane, who is also a member of the Retail Motor Industry Organisation, believes a reduction in fuel prices will improve commuter costs, increase family buying power, and enhance the holiday experience by making travel and daily activities more affordable.
“As retailers, we are thrilled to see our customers get more value for their hard-earned money during this special time,’’ he said.
The June fuel decreases are:
· ULP 95: R1.24
· ULP 93: R1.24
· 500 ppm Diesel: R1.19
· 50 ppm Diesel: R1.09 decrease
· Illuminating Paraffin: R1.07 decrease
· LP Gas: R1.35 per kilogramme
“With more disposable income, families are likely to spend more on local services and retailers. From dining at local restaurants to shopping at convenience stores, this increased spending supports the community and stimulates the local economy.
“From a trade perspective, petroleum retailers anticipate increased foot traffic as fuel prices drop with more motorists visiting fuel stations, providing an opportunity for retailers to showcase additional services. From convenience stores to on-site restaurants, these visits can lead to increased sales across various segments,” he said.
He further explained that retailers play a vital role in the community by providing essential services and products, especially during the holidays, helping families enjoy their time together.
“Lower fuel prices help reduce overall inflation by decreasing transportation and production costs, leading to more stable prices for a wide range of goods and services. Increased consumer spending also impacts economic growth by boosting economic activity, contributing to higher GDP growth. Businesses, including retailers, benefit from this uptick in economic activity.
“The reduction also provides exchange rate stability. A stronger rand, contributing to the lower fuel prices, makes imports cheaper, improving the trade balance. However, political uncertainty remains a risk for currency stability.
“We are committed to ensuring that our customers get the most value for their hard-earned money, making this holiday season one to remember. Enjoy the savings, support your local retailers, and make the most of the holiday season,” said Ramolaholane.
The Star