Fuel price reduction brings hope for the economy

THE Road Freight Association (RFA) has welcomed the reduction in fuel prices, saying it is a good start to the new year. The reduction came into effect in the first week of the new year, on January 4. Petrol prices went down by R2,06 per litre and R2,69 per litre – this means a litre of 95 unleaded petrol will cost R21.40 inland and R20.75 on the coast.

In a statement where the association was reviewing the year 2022, they said a decrease in these price ranges (or more) is very good news, both for the consumer directly and indirectly. 

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RFA CEO Gavin Kelly said the northward effect on rates for capital will ease making sorely needed investments in the logistics sector more palatable.

“More importantly, there will be a marginal increase in the return on investment (ROI) for all those who are economically active, and the growth of small businesses will stand a better chance.

“This year [2022] may not have the bountiful festive season/year-end as is hoped by many retailers (large and small), but the economy is improving at a far faster / more resilient rate than what was initially expected. This should continue into the first two quarters of 2023, which will result in higher demand for consumer goods, and that will result in stronger logistics demand,” said Kelly.

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Kelly highlighted that the Africa Region is in a process of change and rebirth. He said the development of the free trade area / more open trade between neighbours, and the development of industries and manufacturing that will be exported to the world, will be high on each country’s agenda. 

“This will be very exciting, with multitudes of opportunities becoming available, and road freight will be the backbone for much of the infrastructure for the developments and trade,” he said. 

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Kelly said they are on the lookout for the changes that are to come with the new year. 

“The year 2023 must also see those departments mandated with ensuring law and order, so they may play their part, without fear or favour, in ensuring that the vital logistics supply chains are protected. Rail and harbours must become more efficient. They need to play their part and understand that the various transport modes – air, sea and land (road and rail) – must work together. They should not compete with one another – and definitely not rely on prescriptive legislation to artificially skew competition and efficiencies. We will all pay that price.”

The association said it will play its part to support growth, ensuring goods get to their respective destinations and continue to bring local and regional benefits to our families, communities and economy as a whole.

ENDS