Fu­el in­cre­a­ses ca­ta­strophic - AA

George Herald - Auto Dealer - - News -

Fu­el u­sers are fa­cing un­pre­ce­den­ted p­ri­ce in­cre­a­ses in Oc­to­ber, ac­cor­ding to the Au­to­mo­bi­le As­so­ci­a­ti­on (AA) com­menting on u­nau­di­ted month-end fu­el p­ri­ce da­ta re­le­a­sed by the Cen­tral E­ner­gy Fund (CEF).

"The­se in­cre­a­ses are ca­ta­strophic for ro­ad u­sers," the AA says. "T­hey are the big­ge­st in South A­fri­can his­to­ry. The ma­jor cul­prit is South A­fri­ca's cha­o­tic e­co­no­mic po­li­cy which has left us de­fen­ce­less a­gainst up­ticks in in­ter­na­ti­o­nal oil pri­ces."

With the rand and oil con­tri­bu­ting al­most e­qual­ly to the ri­ses, pe­trol is ex­pected to be up by R1,01 per lit­re, with die­sel spi­king by a mas­si­ve R1,24. Il­lu­mi­na­ting pa­raf­fin u­sers are al­so in for a shocking hi­ke with the p­ri­ce pre­dicted to in­cre­a­se by R1,05.

"Ex­clu­ding mont­hs w­he­re fu­el taxes we­re hi­ked, this will be the lar­ge­st sin­gle fu­el p­ri­ce in­cre­a­se South A­fri­ca has e­ver ex­pe­rien­ced," the AA says.

The as­so­ci­a­ti­on furt­her says the im­pact on the e­co­nomy by such in­cre­a­ses may put pres­su­re on pre­si­dent Cy­ril Ra­map­ho­sa's re­cent­ly an­noun­ced sti­mu­lus packa­ge.

"We es­ti­ma­te this in­cre­a­se could ex­tract a furt­her R2,5-bil­li­on a month in trans­port cos­ts from an e­co­nomy that is al­re­a­dy on the ro­pes," the AA says. "The cost of doing bu­si­ness will go up and con­su­mers' dis­po­sa­ble in­co­me will shrink. We don't be­lie­ve the e­co­nomy could grow me­a­ning­ful­ly un­der such con­di­ti­ons."

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