The reduction in petrol prices will also positively impact commuter costs and provide families with enhanced spending power. Picture: Timothy Bernard/ Independent Newspapers
A respite in the fuel price today comes just in time for families looking forward to the upcoming school holidays.
This is according to Lebo Ramolahloane, the vice chairman of the South African Petroleum Retailers Association (Sapra), representing the interest of numerous petroleum retailers in South Africa and a proud association of the Retail Motor Industry Organisation.
He said motorists could look forward to a significant fuel decrease thanks to a strengthening rand against the US dollar and lower prices for Brent Crude oil.
The June decreases are as follows:
· ULP 95: R1.24 decrease
· ULP 93: R1.24 decrease
· 500ppm Diesel: R1.19 decrease
· 50ppm Diesel: R1.09 decrease
· Illuminating Paraffin: R1.07 decrease
· LP Gas: R1.35 per kilogram decrease
Ramolahloane said, “The reduction will also positively impact commuter costs and provide families with enhanced spending power.
“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, he added.
“While the direct benefits to families and retailers are evident, from a macro perspective the broader economic implications of the fuel price drop are equally significant:
“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,” Ramolahloane said.
BUSINESS REPORT