After months of enduring eye-watering fuel price hikes, the tourism industry in South Africa is eventually finding some relief at the pumps, with the price of petrol dropping by a total of R3.36 (€0.19) a litre in August and September.

At midnight on Wednesday, September 7, the prices of both 93 and 95 octane ULP and LRP grades decreased by R2.04 (€0.11), while the prices of 0.05% sulphur and 0.005% sulphur diesel fell by 56.34 c/l and 46.34 c/l respectively, thanks to lower global oil prices and a slightly strengthened rand.

The decreases come on the back of last month’s R1.32 decline in the price of both grades of petrol, and in sulphur diesel, an 88 c/l drop in 0.05% and a 91 c/l drop in 0.005%.    

“Every time the petrol price goes down it lowers the price of travel, meaning that people will be a bit more positive when planning their trips because of that little bit of relief that is coming through the pumps. It also has a positive impact on facilities buying goods, as this normally means delivery prices will also go down,” said TBCSA CEO, Tshifhiwa Tshivhengwa. 

The Southern African Vehicle Rental & Leasing Association (SAVRALA), welcomed the decreases, saying that positive impacts would be felt in both the immediate and medium term. 

“SAVRALA notes that such a significant decrease in the cost of fuel will have a positive effect on transport costs. With fuel prices dropping, there should be a boost for the local tourism industry and it will bring relief at the right time for domestic tourism – the festive season,” said SAVRALA GM, Sandile Ntseoane. 

“The decreased fuel price will go a long way towards placing downward pressure on inflation as well as the cost of doing business in South Africa, which is one of the key drivers of the items measured in the ‘inflation basket’. This should certainly boost tourism and lower the cost of flights bringing in much-needed tourists.”  

Ntseoane cautioned that South Africa was still too dependent on fuel imports and at the whim of global political events and the rand-US dollar exchange rate. 

“SAVRALA calls on the government to expedite programmes to make South Africa less reliant on fuel imports, by improving or expanding local fuel manufacturing processes, as well as stepping up the introduction of appropriate and sustainable electric vehicle programmes.”