Cape Town – The decrease in the prices of petrol and diesel will bring some respite to deeply indebted consumers, said Debt Rescue CEO Neil Roets.
From Wednesday November 5, petrol 95 and 93 (ULP and LRP) is coming down by 45 cents a litre (c/l).
The price of diesel with 0.05% sulphur will drop by 61 c/l and diesel with 0.005% sulphur will decrease by 60 c/l.
“What we hope for is that the retail sector takes cognisance of this reduction and that it will be reflected in lower prices for all goods and services once the price decrease has worked its way through the system,” said Roets.
He said while the price reduction was to be welcomed, consumers should not see this as an opportunity to stack up even more debt.
“With Christmas around the corner, some consumers may see this as an early Christmas present. This is not the case because there is a strong likelihood that the rand could fall suddenly because the economic fundamentals remain weak,” he cautioned.
chief economist at Efficient Group, Dawie Roodt, said more decreases could be expected later in the year if the rand remained at present levels and if the oil price continued to decline.
“Both the rand and the oil price is all over the place which makes long-term predictions difficult,” he added.
Responding to the price drop, Fin24 user Michael Wolffe, shrugged off the small decrease.
“In the last month whilst I have been in California, the gas price dropped at my fuel station from $4.79 to $4.19.
“This drop of .60US cents or R6.60 (at R11=$1) equates to R1.74 a liter – and in SA our motorists are getting .45cents! Who is getting the cream?” he asked.
Another Fin24 user, Karabo Serakalala, provided five tips to save on petrol costs.
– Drive your small car with a small engine capacity around your area and only use your big car for long distances.
– If you are around the city centre whereby it’s easier to walk rather than driving, do so
– Avoid driving for shorter distances of few meters
– Avoid air-con unnecessarily and try to open your driver’s window a bit for the air to infiltrate,
– Be careful on how you brake as your braking might have a huge impact on the consumption of your fuel and the lifespan of your tyres as well.