The hike in the price of petrol of 23 cents a litre, which comes into effect at midnight on Tuesday night, will bring the price to its highest since 2008 and is bad news for both vehicle owners and consumers.
The weakness of the rand against the dollar and the high oil price means tough times ahead for business and commuters alike. Of great concern is the impact on the crucial SMME and small-to-medium sized business sector, especially those involved in logistics and provision of services. This is the area of our economy seen as crucial to stimulating growth and employment opportunities.
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The retail price of all grades of petrol will rise by 23c a litre and diesel will increase by 36c. For Durbanites, many of whom are already considering lift clubs, this will be a harsh blow to the bank balance, and many will be forced to rethink non-essential travel, including weekends away.
Tuesday night’s increase follows an 18c hike in April and one of 29c in May.
“It is certainly bad news all round,” the Automobile Association’s Gary Ronald said. He said the increase would have a negative effect on South Africans, the biggest one being less money in people’s pockets.
“In addition to increases in public transport, consumers will see food on shop shelves increase in about a month’s time, when all food consumables get affected.”
The South African National Taxi Council has said it would have to increase taxi fares around mid-November. They said they had no choice, given the hike.