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Cape Town - The petrol price drop at midnight on Tuesday is unfortunately not sufficient to bring relief to consumers, according to experts.
The energy department announced on Friday that the petrol price will decrease in May by 15.0 cents a litre (c/l) in Gauteng.
In addition, diesel will drop by 29.78 c/l, illuminating paraffin will come down by 25.0 c/l and liquefied petroleum gas (LPG) by 4.0 cents/kilogram.
Experts have welcomed the news, but added that it will likely not benefit consumers.
The price of 95-octane petrol increased in total by 82 c/l in Gauteng and 78 c/l at the coast since the year started.
The South African National Consumer Union (Sancu) said any price decrease is always good news to consumers, but apart from a little relief for motorists at the pumps there is likely to be no impact on other prices.
"The substantial petrol price increases in recent months are already filtering through to the rest of the economy and will continue to do so," deputy Sancu chairperson Clif Johnston told Fin24.
Efficient Group chief economist Dawie Roodt shared this view.
"It will not impact consumers much because the recent increases are still being digested," he told Fin24.
Debt expert Neil Roets said much more is needed to bring sufficient relief to consumer in the wake of the many petrol price increases and the interest rate hike.
"We often see that if the petrol price goes up, the price of goods and services increase in accordance with the petrol price, but when the petrol price goes down, the price of goods and services does not go down accordingly."
- Fin24
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The energy department announced on Friday that the petrol price will decrease in May by 15.0 cents a litre (c/l) in Gauteng.
In addition, diesel will drop by 29.78 c/l, illuminating paraffin will come down by 25.0 c/l and liquefied petroleum gas (LPG) by 4.0 cents/kilogram.
Experts have welcomed the news, but added that it will likely not benefit consumers.
The price of 95-octane petrol increased in total by 82 c/l in Gauteng and 78 c/l at the coast since the year started.
The South African National Consumer Union (Sancu) said any price decrease is always good news to consumers, but apart from a little relief for motorists at the pumps there is likely to be no impact on other prices.
"The substantial petrol price increases in recent months are already filtering through to the rest of the economy and will continue to do so," deputy Sancu chairperson Clif Johnston told Fin24.
Efficient Group chief economist Dawie Roodt shared this view.
"It will not impact consumers much because the recent increases are still being digested," he told Fin24.
Debt expert Neil Roets said much more is needed to bring sufficient relief to consumer in the wake of the many petrol price increases and the interest rate hike.
"We often see that if the petrol price goes up, the price of goods and services increase in accordance with the petrol price, but when the petrol price goes down, the price of goods and services does not go down accordingly."
- Fin24
Help us help you by taking our second annual Debt survey and you could win R3 000, or add your voice by sharing your debt experiences, debt-busting tips and insights. Have a question? Ask our experts.
