Motorists welcome early Christmas gift

NELSON Mandela Bay consumers have welcomed with caution the upcoming reduction in the price of fuel.

While they believe it will be a great early Christmas present, most feel the good fortune will not last long.

The Automobile Association (AA) said this week that motorists could look forward to a petrol price decrease next week.

The AA was commenting on the Central Energy Fund's preliminary fuel price data, which showed substantial over-recoveries in the fuel price.

"The drop in the petrol price is currently pegged at between 40c and 44c a litre, while diesel is showing an almost 56c a litre reduction. Illuminating paraffin is set for a drop of about 49c a litre.

"As December approaches, it looks as if motorists planning to drive to holiday destinations will have a little more spending money in their budgets," the AA said.

Port Elizabeth economist Professor Charles Wait said he did not think the decrease would leave much money in the pockets of consumers for very long.

"Of course it depends on the different households and how much of their budget goes to petrol for private vehicles. But it is a positive fact as far as the inflation rate is concerned."

He said the increase would mean nothing for consumers who relied on public transport.

"I doubt the taxis would decrease their prices. There is every excuse to increase prices when an input like petrol increases, and there is every conceivable excuse not to decrease prices when such an input becomes cheaper."

While Port Elizabeth consumers are happy about any decrease, they are not ready to throw caution to the wind,just in case the price goes up again.

Walmer resident Rushnee Adams said any petrol price relief was welcome.

"I am just hoping that this decrease can be carried through to other commodities affected by the increase of fuel so we could feel the benefit in other areas as well. But it really is a great early Christmas present."

New Brighton resident Anelisa Sodladla said the decrease would go a long way in making sure she had a good festive season.

Teacher Gasina Ismail, who drives from Uitenhage to Bethelsdorp every day, said she felt it should drop more.

"I feel it should come down way more than what it usually does in comparison with the oil price. It comes down so little one can hardly see or feel the difference."

SA National Taxi Council (Santaco) regional chairman Mbewana Matomane said a further petrol price drop would make their job easier.

"For anyone who works in the transport industry this is amazing news."

He said the industry had not yet decided whether there would be price decreases.

"We haven't had a meeting about that yet because the price always decreases by a much smaller value that what it increases by." - Thulani Gqirana