Energy Department needs to do more to decrease fuel costs: NTA

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The National Taxi Alliance (NTA) says despite welcoming the recent fuel price announcements, the Energy Department needs to do more to decrease the cost at the pumps.

As of midnight, petrol will decrease by two-rand-four-cents per litre and diesel by as much as 56-cents per litre.

NTA’s Spokesperson Theo Malele says, the decrease is not enough.

“We welcome the reduction in the fuel prices, even though it is not sufficient for us to begin to breathe as a business. We thought the ministry by now would have made some serious concessions in ensuring that the taxi industry has a buffer between R5-6, but that remains to be seen.”

Fuel price set to decrease on Wednesday:

In a statement, the Department says the downward trend is due to the average Brent Crude oil price that decreased from 105.00 US Dollars (USD) per barrel to 94.00 USD per barrel during the period under review. The main contributing factors are, a decreasing trend in oil prices experienced during the period of July and early August due to recession fears and economic slowdown has been countered by declining inventories and supply that is still tight and all the lockdowns in China have caused the oil price to fall this year thanks to the well-documented effect of lockdowns on oil demand.”

The statement further says that the average international product prices of petrol, diesel, illuminating paraffin and LPG decreased during the period under review.

Meanwhile, the Automobile Association of South Africa says it welcomes decreases in fuel prices although fuel prices are still higher than January levels, it will be a breather for motorists.

Automobile Association welcomes decreases in fuel prices: Layton Beard