R8,80/l to have nasty impact

The Automobile Association has warned consumers that the higher cost of fuel - increasing by a record 68c per litre at midnight on Tuesday - will reduce their disposable income for some time to come.

The wholesale price for diesel is set to increase by R1,30 a litre. Illuminating paraffin will increase by R1,18 a litre.

Motorists will be paying in excess of R8,80 per litre of petrol in Gauteng.

AA spokesperson Gary Ronald said: “The impact of the highest fuel prices ever in the history of transport in South Africa will without doubt be felt on the supermarket shelves within the next six to eight weeks as freight costs are passed on to the consumer.

“Coupled with the continued increase of the CPIX and PPI, consumers are cautioned to expect further increases in the cost of living due to the escalating price of fuel.”

The bulk of the increase is a result of the increase in international product prices, with crude oil trading at around $105 per barrel, combined with a weaker rand.

In addition, the increase of R0,05 to the Road Accident Fund and R0,06 to the fuel levy, as provided for in Finance Minister Trevor Manuel’s Budget speech, will be effective from Tuesday.

“The rapidly escalating price of diesel in particular can be ascribed to global demand outstripping supply. Locally, Eskom is utilising diesel to power some of its generators and this has increased the demand substantially.

“In addition, general transport costs will be increased and passed on to the consumer. We expect to see an increase in commodity prices at the till,” said Ronald.

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