Costly ride for SA motorists
As oil heads for $100 a barrel, consumers are likely to spend R14bn more on fuel this year
Motorists will face the harsh and inevitable consequences of last month's fuel- price reprieve as a whammy of an increase is expected to kick in from midnight on Tuesday. Energy Minister Jeff Radebe's surprise intervention in August to offer relief to consumers, with a modest 5c rise in the petrol price instead of a 25c hike, has resulted in deferred pain for motorists this month. Radebe dipped into the slate levy fund to compensate fuel producers for the under-recovery in the fuel price last month but indicated that it was a one-off. The Automobile Association (AA) estimated the increase in October could extract a further R2.5bn a month in transport costs from the economy. "The cost of doing business will go up and consumer disposable income will shrink." The AA warned that the petrol price is expected to rise by R1.01 a litre, and diesel by R1.24, in October. By late on Friday night the department of energy had not yet announced the increase. Prior to any increase that may kick in...
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