The South African National Consumer Union has challenged retailers to pass on savings from dramatically falling fuel prices to customers, reports Eyewitness News.
Despite an expected increase in petrol price of 50 cents in February 2009, fuel prices have almost halved since June last year. Diesel and paraffin prices are not expected to drop in February.
The South African National Consumer Union’s vice chairman, Ina Wilken, says she’s amazed this drop has yet to be reflected on store shelves. “When petrol goes up retailers immediately hike prices. The same should happen when it drops,” said Wilken, talking to Eyewitness News.
Chris Moerdyk, writing on Bizcommunity, points out that so far only Shoprite has stepped up to the plate and has said that the R27 million it will save on fuel for its 400-strong delivery fleet will directly benefit its customers.
He continues saying: “Of course, Shoprite has been very clever by concentrating on its delivery fleet savings for its source of price reduction. Seems to me that its suppliers haven’t exactly fallen over themselves cutting their prices, even though they must be saving a bundle on their own fuel costs.
“Consumers are not stupid and they know that when the price of fuel goes up, product prices are jacked up almost within nanoseconds.
“So, when retailers mumble on about ‘wanting to see what trends develop in the economy before lowering prices,’ there are not many consumers who believe them,” he concludes.
The news from Shoprite immediately begs the question whether its sister company Checkers will follow suit? And looking further afield, will any other SA retailer?
