Taxi operators have expressed some relief following a decrease in fuel prices this week.
The Central Energy Fund has confirmed that 95 unleaded petrol decreased by 22 cents per litre and 93 dropped by 21 cents. Diesel users saw a more notable cut of between 41 and 42 cents per litre.
For township-based SMEs like spaza shop owners, mobile service providers and taxi drivers, the decrease comes after months of rising fuel costs that have eroded already-thin profit margins.
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Speaking to Vutivi News, Soshanguve Taxi Owners Association (SOTOA) spokesperson Vuyisile Jaca said the fuel costs was one of their biggest challenges, but they were grateful for the decrease.
“The decrease has never been enough; it’s just a temporary relief and we know very soon it will go up, but we appreciate whatever effort the department has made. The 41 cents per litre cut will go a long way on our taxis,” said Jaca.
Taxis remain the most affordable and accessible form of transport for both business owners and customers.
He said the association was currently not considering reducing taxi fares, and instead hoped that the government would offer them fuel subsidies or transport relief funds.
“Normally, SOTOA will review our prices after three years and engage with the community afterwards, so for now there won’t be any decrease or increase in the taxi fares,” said Jaca.
Street vendors and informal traders, who travel daily to buy stock, also welcomed the drop in fuel prices.
Godfrey Shirinda, who runs a mobile fruit and vegetable business which takes him to various busy intersections around parts of the township, added that every cent he saved counted.
“The petrol reduction is better than nothing. I spend about R1500 on diesel monthly, so this drop will help me save this month and hopefully (I) will see a profit,” he said.
According to Minerals and Petroleum Resources Minister Gwede Matashe, the adjustment was based on the anticipated increase in oil production by the Organisation of the Petroleum Exporting Countries (OPEC) members.
“The average international petroleum product prices of petrol and diesel followed the decreasing trend of crude oil prices while the price of LPG increased due to higher freight (shipping costs) during the period under review,” he said.
South Africans will now pay R21.40 per litre for 95 unleaded petrol, while 93 users will pay R20.57.
