The petrol price has increased yet again – with the latest hike pushing the cost of fuel to an all-time high.
The department of energy on Friday announced a 23 cents increase, which sees the price soar as high as R10.77 per litre in Gauteng for 95 octane from Wednesday. On the coast the price will rocket to R10.47.
Diesel rose by 36c to just over R10 a litre and the price of wholesale paraffin rose by 41c per litre to about R7.70 per litre.
The department confirmed it was the highest petrol price in recent years but could not say whether it was the highest yet. But Econometrix senior economist Tony Twine told Weekend Argus that the price of petrol was at its highest.
“The cost of all fuel has increased by at least 25 percent over the last year. Petrol increased by about 35 percent since the start of the year, from R8.29 in December 2010 to R10.60 (in Gauteng) this year. Diesel increased by 25 percent and paraffin by 40 percent,” said Twine.
He attributed the rise to the volatile rand and oil industry uncertainties and predicted further increases in the coming months.
Dawie Roodt, chief economist for the Efficient Group, said the hike was inevitable but had been delayed by the energy department to allow consumers to adjust to the previous increase on October 5.
“Inflation pressures have slowly been building up and the main sources of the pressure are fuels and food. The price hike has been delayed but it was bound to hit sooner or later.”
He said the poor would be most affected. “Those who earn R10 000 or less per month will be hardest hit. Prices will rise in virtually all sectors, from food to clothing, basically anything that requires transport to reach consumers. We’ll see people try to further tighten their belts by mainly cutting into food and transport budgets – but in many cases it may not be possible.”
Thabisho Molelekwa, spokesman for the SA National Taxi Association Council, said
,
“We are doing our best to minimise the impact of fuel hikes on our customers.
“We had to up our tariffs at the beginning of the year due to the unprecedented fuel hikes and would like to avoid imposing further tariff hikes. For now we will soak up the pressure but will mostly likely increase our fares in the near future.”
Roodt said the petrol hike would affect the festive season. “We’ll definitely see a negative impact in spending during the coming festive season but the value of the rand has been steadily increasing over the last few months so it will reduce some of the impact,” he said.
“But it is almost certain that consumers will begin to tighten their belts.”
Primary school teacher Dickson Mathunda from Langa, who Weekend Argus interviewed while he was filling his car up with petrol, said he would travel to work in Gugulethu, which is 10km away, by train in future. He said paying the weekly ticket price of R33 would work out cheaper than paying for petrol.
Mathunda said he doubted whether he and his wife, Nompumelelo, would be able to visit their family in Lady Frere in the Eastern Cape during the December holidays. “It’s already costing me R1 200 to get to Lady Frere and now it’s going to be even more. I just can’t afford it.” he said.
Nelson Mehlomakulu, who was putting R50 worth of petrol in his car, joked: “Let’s toyi-toyi. Let’s march. I’m calling Malema.”
Turning serious, Mehlomakulu, an independent contractor who delivers goods to township residents, said petrol already cost him R120 to R150 per day. “Petrol is very important to me. It’s my living. But I can’t afford it if it goes up all the time.”
Bonteheuwel resident Bronwyn Andrews, who filled up with diesel in Klipfontein Road in Athlone, said: “It’s crazy. Should we start taking the bus?”