Cape Chamber of Commerce and Industry slams fuel price hike

A motorist uses a fuel pump to fill an automobile with unleaded fuel. Photographer: Dave Thompson/Bloomberg

A motorist uses a fuel pump to fill an automobile with unleaded fuel. Photographer: Dave Thompson/Bloomberg

Published Apr 7, 2022

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THE Cape Chamber of Commerce and Industry slammed the recent hike in fuel prices, saying it will spark inflation and add to the woes of commuters.

On Wednesday the price of 93 octane petrol increased by R0.28 per litre and 95 octane petrol by R0.36 a litre.

The price of diesel increased by between R1.52 per litre and R1.69 a litre.

"The new petrol price increase, though dampened by raiding the State’s emergency crude oil stocks so the levies and taxes can be suspended for a while, can only postpone a later, possibly massive jump that will add another crippling blow to commuters in Cape Town," Jacques Moolman, president of the Cape Chamber of Commerce and Industry told Weekend Argus.

According to Moolman every increase in fuel costs - petrol, diesel and gas - has a ripple effect on the economy.

"If their prices rise, so does everything produced and transported for sale in the country. The exact impact on the prices of commuter taxi fares, and train and bus tickets will vary, of course, and be subject to commercial decisions.

"Wise management may be those that understand the pressures their employees and customers face."

As for private commuting, Moolman says lift clubs may help to some extent, but warns that the costs of journeys to and from work will then vary according to the type, size of the engine, state of the tyres, and even the quality of the driving.

"Overloading could be an issue and best avoided."

Moolman said Cape Town’s "hard-pressed" commuters and the companies that employ them would come under pressure for wage and salary increases and all parties need to recognise that compromise was essential, especially given the less than ideal state of the commuter rail service.