Durban – Good news for consumers as the price of petrol is set to drop by 36c a litre at midnight on Tuesday. However, the fuel levy of 52c a litre will still be introduced on April 1.
Andre Venter, spokesperson of the trade union United Association of South Africa (UASA) said the drop of 36c a litre in the pump price of petrol, as well as 47c/l for diesel and 30 c/l for paraffin is excellent news for South Africa’s workers.
“After the recently announced VAT increase shock which promises to put workers at an immediate disadvantage, the lower fuel price will offer some interim relief, albeit for a short period of time, bearing in mind that the fuel levy of 52c per litre will be introduced on April 1,” he said.
He said for the sake of the workers and the poor, UASA hopes that there will be a ripple effect as a result and that there will also be a reprieve in the price of products that will now be transported at lower cost, and the price of public transport, at least until the next increase in the fuel price.
Neil Roets, CEO of Debt Rescue, a debt counselling company, said while he welcomed the reduction in the price of fuel as most South Africans struggle to put food on the table.
Roets said the petrol reduction is because of a light currency and lower crude oil price.
“We know from our own research the impact that every price increase has on the overwhelming majority of South Africans who live on the edge and who battle on a day-to-day basis to make ends meet. While we fully understand the need of the government to generate revenue to pay for the vast array of services rendered by the state, increasing a tax like VAT that affects the poorest of the poor disproportionately was perhaps not the best way to do it.”