Weekend Argus (Saturday Edition)
Fuel prices to hit hard this season
THE predicted fuel increase for next month may see thousands unable to go home for the holidays as tickets prices for long-distance travel will be affected.
The Central Energy Fund announced predictions of fuel increases effective from December 7.
According to the AA, data indicates an increase in petrol and a decrease in diesel prices.
“The association says the data is indicating significant increases to petrol prices of between 97c/litre and R1.09/ litre, but a decrease of up to 34c/litre for diesel next month. Illuminating paraffin is also expected to increase by around 30c/litre. With these expected increases to petrol, the price of a litre of 95 ULP, for instance, will climb to just under R24/litre, which will be way below the high of R26.74/litre seen in July, but which will still be higher than September, October and November prices.”
Though the AA said it must be noted these are mid-month figures and are likely to change before the final adjustment for December, it is certain petrol prices will go up next month.
“However, increases to petrol prices are almost certain to happen while decreases to diesel are also almost a certainty. Given that many people will be travelling by vehicle in December, we advise motorists to carefully plan their budgets now to ensure they have the necessary funds to cover their expenses, which may also include toll fees”
The SA National Taxi Council’s Bafana Magagula expressed frustration at these predictions.
“These increases will be a pain to us. We are biting the bullet. We are very frustrated.”
Magagula lambasted the government for not playing fair with the association and for failing to subsidise them. He also expressed frustration with taxi routes competing with government vehicles. Magagula warned passengers of taxi increases this December, but said passengers would be given a week’s warning before the prices come into effect.
“We are warning passengers of possible taxi increases. Some routes will be affected, not necessarily because of the December predictions, but because of the petrol price increases during this year. Some prices will remain unchanged.”
Magagula warned that all the affected routes would increase by 5-10% next month.
“If a taxi fare is currently R20, then it will increase by R1 or R2.”
The chief marketing officer of FlySafair, Kirby Gordon, said fuel increases were never good news, but flight prices were informed by supply and demand, and not by the increase in petrol costs.
“Flight tickets are highly commoditised and as a result are really traded on a market. What this means is that the forces of supply and demand really determine the price of tickets, so when demand is high relative to supply, we’ll get good prices. On the contrary, if supply is high and demand is low, we’ll get very low prices, no matter what the fuel price does.”
Intercape said fuel remained the biggest expense for any intercity coach operator and definitely had an impact on ticket fares. They have encouraged passengers to book their tickets early for their December travels.
“We encourage all passengers to book their tickets early for this festive season in order to get the best price offer.”
Vuyisa Jobela from Jobela Bus Services, whose buses specialise in long-distance travel and have routes as far as Johannesburg, Malawi, Cofimvaba, Ngcobo, Tsomo, Mthatha, Ngqamakhwe and Butterworth, has confirmed that bus fares will increase next month.
“Obviously bus prices will go up. I’m sure every company wants to take advantage of December. Fuel hikes will also play a role, but we also make a lot of money in December, as many people are going home.
“The current ticket price from Cape Town to Mthatha, for example, is R600 online, R650 via the office. It will more than likely be R800 to R850 in December.”
Cape Town residents who originate outside the province have weighed in on the fuel cost predictions.
“I work here in Cape Town, but home is Mpumalanga. I planned my December trip a long time ago, so as much as the petrol rise will be costly, I will just use my savings. The estimate is R1 petrol increase, so at most I’ll spend more or less R1 000,” said Bongani Dube from Table View.
Tlotla Mkoatle from Cape Town said: “The drive to Matatiele will be a long and tedious journey. A one-way trip with these estimates will be R3 000. But I think I am going. My family would be disappointed if I didn’t make Christmas.”
Patience Mxili from Delft said she won’t be making it home this year.
“No, I won’t be going home. I saw my family in Easter already. A bus return ticket to the Eastern Cape will be too pricey.”
Tinashe Moyo and Ken Dengu, both from Zimbabwe, said they hoped to capitalise on the travellers who will be coming to Cape Town for the holidays.
“I won’t be going to Zim, because as a waiter I make more money in December. It has nothing to do with the fuel price,” Moyo said.
Dengu from Bellville said: “I will only be travelling to Zimbabwe in January. I make more money during December.”
Robert Maake, the senior manager at the Department of Energy, refused to comment, as the department does not make predictions.
“Unfortunately, the department does not make any predictions on the fuel prices. I would comment once the department has issued a media statement to the public.”
THE Western Cape economy is expecting billions of rands in tourism spend this festive season.
CEO of Cape Town Tourism, Enver Duminy said 1.56 million two-way seats between November 2022 and March 2023 are expected, generating a massive R7.9 billion in tourism spend.
“I am excited to share the good news that between November and December, we are expecting 184 international flights per week. This will increase to 191 flights per week between January and March next year.”
The City’s mayco member for economic growth, James Vos, said that the City was expecting at least 75 cruise ship visits, carrying more than 195 000 visitors. With almost R100m in total estimated passenger spend per port visit.
“We can expect several jobs to be created in both downstream and upstream industries.”
Local businesses and entrepreneurs are encouraged to take advantage of the various opportunities the influx of tourists will bring, as well as the various initiatives offered by the City ensuring entrepreneurs are equipped.
“We help local businesses to connect with these tourists by giving them the training to shape their operations for this market. For example, CTT has rolled out a Neighbourhood Experience Development training manual to help guide SMMEs in developing their businesses, and to encourage neighbourhood readiness.
“CTT also hosts business development workshops and networking events for their 1 000-plus members, and the City of Cape Town further supports entrepreneurs with business services and a series of free up-skilling classes,” Vos said.
MEC of Finance and Economic Opportunities Mireille Wenger said the two airports in the Western Cape made an immense recovery from last year.
“Cape Town International Airport and George Airport have both reported an impressive recovery with a busy flight schedule predicted for the upcoming festive season.
“Visitor attractions experienced a 76% growth in the number of visitors when compared to the same month in 2021, while hotel occupancy is recovering at a rate of 83%.”
The City has also begun its beach operations by deploying lifeguards, ensuring safety on Cape Town beaches.
“The summer season is fast approaching, and a key part of our preparedness is to ensure the many beautiful beaches and swimming pools across our metro are safe and ready to welcome residents and visitors.
“We have lifeguards recruited put through their paces, and I want to call on beachgoers and pool visitors to please also play their part and be responsible when enjoying their time in the sun,” said mayor Geordin HillLewis.
The City has ensured that lifeguards are deployed at 32 swimming pools and 29 beaches.
“Lifeguards are working even when there are no active incidents for them to respond to. Part of their duties is to conduct observations and spot potential hazards before they become life-threatening. Lifeguards play an important role in ensuring the safety of bathers,” said mayco member for community services and health Patricia van der Ross.
Residents and tourists have been cautioned not to bring alcohol to beaches. As far as safety is concerned, mayco member for safety and security JP Smith said that the City has a comprehensive festive season safety plan each year, details of which will be made public soon.
The Department of Economic Development and Tourism has confirmed that they will be producing safety information collateral that will be distributed to accommodation establishments, major tourism attractions, airports, tourism offices, hospitals and police stations across the province.