The drop in the price of fuel – by about 70 cents a litre for both petrol and diesel – that came into effect at midnight, should result in an all-round price decrease for consumer goods, but not just yet, Road Freight Association CEO Gavin Kelly has said.
Looking back at the succession of three steep increases towards the end of last year, Kelly said it had impacted transport costs, resulting in an increase in the cost of goods.
“Any decrease in fuel prices will have a knock-on effect of easing pressure on operational costs –which will also translate to the prices consumers will pay.”
Kelly added though that “it must be understood that there will not be an immediate reduction of prices at retail stores as those goods that were transported at higher fuel prices would still have to filter through the various depots and retail points.
“Retailers may decide to adjust prices - transporters do not have control over consumer pricing.”
Nevertheless, any reduction in fuel cost was good news as it would translate into a drop in direct costs which affected transport rates, Kelly said.
