Durban - Trade Union UASA has welcomed the decrease in the fuel price announced by the Department of Mineral Resources and Energy on Tuesday.
The trade union said that it is the biggest decrease in fuel since 2020.
The Department of Mineral Resources and Energy announced that motorists will fork out R2.04 less per litre for both grades of petrol, and between 56c and 46c less per litre for diesel. The price of paraffin will also drop by 82c per litre.
Abigail Moyo, UASA spokesperson said: “Workers will breathe a sigh of relief as the past couple of months have been tough with the fuel price skyrocketing to over R25 per litre and interest rates and inflation soaring at the same time. This resulted in financial distress for workers.”
Moyo said that the union expects to see decreases in food prices and other costs.
“We are hoping to soon see the resultant decreases in transport costs and the associated decreases in food and other commodities that are reliant on transportation cost. UASA urges the government to complete their fuel price review and find ways to cut costs to assist workers in making ends meet.”
Paul Makube, senior agricultural economist at FNB Agri-Business said that the fuel price decrease was good news for the agriculture sector, especially as it comes at the onset of the new summer crop season with planting in the eastern areas just a few weeks away.
“A reduction at the pump provides relief for producers who must navigate the high input cost environment with fertiliser and feed costs for livestock remaining elevated relative to last year. The cost of planting for summer crops, the harvesting of winter crops, and the daily distribution of fresh produce and meat to markets will be significantly reduced.”
He added that further positive news for the sector is that most international fertiliser prices have also eased from the recent highs with the di-ammonium phosphate (DAP) and urea prices falling by 4.4% and 1.4% respectively.