Drop in diesel prices could see food price lowering

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The South African Petroleum Retailers Association (SAPRA) says should the drop in diesel cost remain consistent, consumers could look forward to a decrease in food prices. The Department of Mineral Resources and Energy on Thursday announced adjustments to fuel prices effective from Wednesday, the third of April.

The wholesale price of diesel 0,05% sulphur will rise three cents per litre inland, but decrease by four cents per litre at the coast.

While diesel 0,05% sulphur will see a small decrease of two cents per litre inland and nine cents per litre at the coast.

SAPRA National Vice Chairperson, Lebo Ramolahloane, says, “Because fuel is directly linked to so many components of the economy, including food prices. you know they are what they are because of the increase in diesel costs. But thanks to the relief that’s currently happening on the diesel price, the decrease that’s coming in the inland and coastal regions, should that remain a constant then those drops can actually be seen in the direct price of food. And that’s how they can basically be absorbed by the general public.”

Ramolahloane also added that the drop in diesel prices, which could lead to a decrease in food prices will not benefit all consumers because of the difference in transportation costs for inland and coastal areas.

“So there is that definite differentiation between who benefits between inland and coastal because of the transportation differences,” says Ramolahloane.