Fuel price benefits 'unlikely'

With the 76 cents plunge in the
price of 0.05% sulphur content
diesel (the fuel most truckers
use) on January 6, the cost of
road transport will also drop on
a proportional basis.
But, economists warn, this
benefit for badly battered
consumers is likely to be
written off with a hefty rise in
the price of foodstuffs – where
the effects of the drought will
have a significant impact on
agricultural product price
inflation.
And the diesel price is not
at its lowest in recent years.
The current wholesale price of
0.05% sulphur content diesel
is 1005.17c/litre in Gauteng
and 972.47c/l on the coast. But
this is higher than it was last
February when – at 926.09c
and 895.49c respectively – it hit
the lowest price in three years.
Defining how the diesel price
was calculated, the department
of energy said: “The average
international product price of
diesel decreased during the
period under review.”
However, it noted that
this was offset by the rand
weakening against the US
dollar on average when
compared to the previous
period.