Is the petrol price drop good news for South African businesses?

South African motorists can breathe a sigh of relief as the petrol price finally dropped this month. We couldn’t think of a better way to start the new year after the petrol price hike at the end of last year. The latest price drop is mainly due to a decrease in the price of Brent Crude oil, and there would have been a more significant drop if the Rand hadn’t depreciated against the US dollar at the same time. The global increase of COVID-19 cases also influenced the price change, as tougher lockdowns curbed the demand for fuel.
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The decreasing petrol price is excellent news, but we’re not getting excited too soon. The expected average price of Brent Crude is well below the current price per barrel, leaving doubt that the price will drop again in the upcoming months. The Automobile Association of South Africa (AA) has said that despite the recent decrease in the fuel price, the current high prices should be a driving force for the structure to be reviewed and audited.

The future of the petrol price is uncertain, but you can control your approach to managing fuel consumption. It’s not always easy to do this, but if you can put measures in place now to monitor and restrict your consumption, you could reduce the effects of price increases in the future.

Maintain your company vehicles

One of the best ways to reduce fuel consumption is to keep your company cars in good condition. Well-maintained vehicles are typically more fuel-efficient, helping you avoid unnecessary fuel costs. The expense of maintaining your vehicles may feel like a burden, but in the long run, it will be cost-effective. At the very least, vehicles in working condition will use an optimal amount of fuel. It may also be wise to invest in fuel-efficient vehicles when it’s time to sell and replace these assets.

Plan your routes in advance

With a route planni