Data indicates estimated decreases in the fuel price in the coming week as follows: R2.35 per liter for ULP95, R2.18 per liter of ULP93, 77c for 50ppm and 87c for 500ppm. Illuminating paraffin is set to drop by an estimated 87 cents per liter.
The Road Freight Association notes that any decrease in the cost of fuel – in particular larger decreases – will have a tremendous positive effect on transport costs and supply chains.
Whilst the price of fuel has dropped, the effects into the logistics chain should be felt in the coming quarter and will certainly make life slightly easier for consumers towards the end of the year.
With fuel prices dropping, there should also be a boost for the local tourism industry to boot.
South Africans will now pay less for fuel than they did in June 2022. This will go a long way to placing downward pressure on inflation as well as the cost of logistics within South Africa, which is one of the key drivers of the items measured in the “inflation basket”.
It must be remembered that fuel price fluctuations are driven by the cost of oil (fuel) on the international market and the Rand/Dollar exchange rate. Concerns remain around the effect global instability has on these two factors and the long-term effect high fuel prices will have on the South African economy.
There would, obviously, be a greater positive/downward) effect on freight logistics if the price of diesel was to drop as dramatically as petrol has, as the majority of road freight logistics is done with diesel vehicles.
The Association calls on the government to speed up programs to make South Africa less reliant on fuel imports, by improving or expanding SASOL and similar manufacturing processes, as well as ramping up the introduction of suitable and sustainable Electric Vehicle program.
About The Road Freight Association
The Road Freight Association was established in 1975 to support its Members who are, in the main, road freight operators. It is a lobbying and negotiating body which influences the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, cross-border transport, education, health, the fuel price, law enforcement, labor relations and many other issues related to road freight transport.
Member companies include small and medium-sized trucking companies, including many family-owned businesses, owner operators, as well as most of the largest trucking companies in South Africa. Members come from all sectors of the trucking industry.
Private and public operators are Members of the RFA. Membership also includes a significant number of affiliates and associates – those companies providing goods and services to the trucking industry.
Team RFA (made up of support staff and experts) is committed to serving you. The team brings with it a high degree of professional experience, knowledge and dedication – which greatly contributes to the effectiveness, relevance and standing of the RFA.
As the voice of the trucking industry in South Africa, the RFA is your voice. It is important that you avail yourself of that opportunity to be heard.
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