The Inkatha Freedom Party today welcomed reports that the retail price of petrol will drop by 161 cents a litre next week.

"The alarming rate at which the price of crude oil increased earlier this year left many people in financial shock, and caused many businesses to raise the prices of their goods. As per usual those who were the hardest hit by the increases were the poorest members of our society, as the high cost of fuel, combined with the shortage of certain basic food types, made everyday life unaffordable. We therefore welcome the drop in the petrol price as it will bring much needed financial relief to South Africans ahead of the festive season,"  said Eric Lucas, the IFP's minerals and energy spokesperson.

The IFP however expressed its concern that the drop in the fuel price might not necessarily lead to a drop in food prices.

"While the latest petrol price decrease will provide some relief for car owners, the benefits must also translate into noticeable decreases in the prices of essential goods and services such as transportation and basic food items, which consume the biggest portion of poor consumers' disposable income," said Lucas.

The IFP recently called on government to do much more to assist the poor.

"The IFP believes the biggest indictment against democracy in South Africa is that poverty has worsened, and is in fact more prevalent today than at any time in our recent past. Neither the levels of economic growth nor the various measures the government has taken to date have been sufficient. As a party we believe that the ruling party should seriously consider lowering prices of paraffin and other items that feature high in the budgets of poor households.  These interventions are necessary if we want to break the cycle of abject poverty," concluded Lucas.

Contact: Eric Lucas, 082 557 2481