The Central Energy Fund has attributed this week’s increase in fuel prices to rising international fuel prices and a weakened rand.
On Wednesday, the cost of diesel increased by R1.42 for 500ppm and R1.43 for 50ppm, which pushed the prices at the pumps to R25.49 and R35.75 respectively, while the price of both 93 and 95 petrol increased by 51 cents per litre.
Gavin Kelly, CEO of Road Freight Association, said transport costs will continue to rise, leaving transporters without an alternative to transport goods. He said those who cannot afford to carry loads at current rates or prices will likely close shop.
“Diesel has doubled [increased by 100%] since December 2021 and road freight transporters use diesel as the energy source for their vehicles,” said Kelly.
“They need to increase their pricing to cover the ever-increasing cost of diesel, and there are transporters who will not be able to carry on. This will be driven by the transporters’ need to fund operations whilst only being paid months after the work has been done.
“The cost will be borne by the consumer. You and I will pay more for everything, from food to fuel, clothing to electronic goods and everything in between.
“[This will result in] more business closures, more unemployment, less business and revenue driven through the transport sub-sector industries, and of course, higher prices at the till.”
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