By Selloane Ntshonyane
• Petrol will drop by 52 cents a litre, while diesel will increase by R1.38 a litre and paraffin will rise by R1.52 a litre.
• Transport companies warn that the diesel increase could push up the cost of food and other everyday goods, while poor families fear they will struggle to afford paraffin.
South Africans will get some relief at the petrol pumps this month.
But families who rely on diesel and paraffin are facing another painful blow.
The Department of Mineral and Petroleum Resources has announced that the price of petrol will drop by 52 cents a litre.
At the same time, diesel will increase by R1.38 a litre and illuminating paraffin will rise by R1.52 a litre.
The department said the changes were caused by both local and international factors affecting fuel prices.
Petrol became cheaper because global oil prices fell.
Diesel, however, became more expensive because of supply shortages linked to the ongoing conflict between Russia and Ukraine.
The weaker South African rand also pushed up the cost of importing fuel.
The diesel increase has worried businesses that depend on transport.
Serame Jacobs, chief executive officer of Noaves International Freight, said fuel is one of the biggest costs for logistics companies.
“As the CEO of Noaves International Freight, I can say that the R1.38 per litre diesel increase is a significant cost pressure on the logistics industry. Fuel is one of our largest operating expenses, and increases of this nature affect every kilometre our fleet travels,” he said.
Jacobs said the company would try to avoid increasing its prices.
But he warned that if diesel continues to become more expensive, businesses may have no choice but to pass the extra costs on to customers.
“Businesses importing or distributing goods will face higher transport costs, and many may have little choice but to pass some of those costs on to consumers. This means South Africans could see higher prices on a wide range of everyday products in the coming weeks and months,” he said.
The paraffin increase is also expected to hit poor households hard.
Thirty three year old Thuto Mohale from Chicken Farm in Kliptown said his family depends on paraffin every day.
They use it for cooking, boiling water and keeping warm because electricity in their area is often unreliable.
“We use paraffin every day, especially because electricity has become expensive and we often have power cuts,” he said.
Mohale said the higher price means his family will have to buy less paraffin.
“I feel like we will now be forced to choose between buying paraffin and buying basic food like bread just to survive,” he said.
He said the family would have to stop using their paraffin stove as a heater and rely on blankets to stay warm during the cold winter months.
While petrol drivers have reason to smile, many South Africans fear the diesel and paraffin increases will push up the cost of transport, food and other everyday essentials at a time when many families are already struggling to make ends meet.
Pictured above: Petrol prices are coming down, but higher diesel and paraffin prices are expected to put more pressure on households and businesses.
Image source: File.
