New petrol price will hurt: UASA

30 September 2011 - 18:43 By Sapa
Petrol
Petrol
Image: Elvis Ntombela

The petrol price increase announced on Friday will have a painful knock-on effect for consumers and the economy, said trade union Uasa.

"Workers will have to pay more to commute to work and back, and will soon have to pay more for food and other consumer goods," spokesman Andre Venter said in a statement.

The energy department said the retail price of petrol would rise by between 36 and 37 cents a litre on Wednesday.

The increase was partly due to the weakening of the rand against the United States dollar in September.

"A price increase of this magnitude will have a definitive impact on inflation, which is already on the rise, and will push up the production price index even further," said Venter.

Consumers would have less money to spend, leading to a further decline in the demand for consumer goods.

This would in turn have a "cascading effect" on job losses, he said.

"We can only hope that our currency will stabilise, which could mean a lower fuel price towards the end of 2011."

The energy department said a litre of 95 ULP (unleaded) petrol in Gauteng would now cost R10.54.

The retail price of petrol 93 ULP and LRP (lead replacement petrol) would increase by 37 cents a litre.

Petrol 95 ULP and LRP would rise by 36 cents a litre.

The price of diesel with a 0.05 percent sulphur content would increase by 35 cents a litre.

That of diesel with a 0.005 percent sulphur content would climb by 37 cents a litre.

The wholesale price of illuminating paraffin would increase by 30 cents a litre.

The single maximum national retail price for illuminating paraffin would go up by 40 cents a litre.

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