Motorists feel the pinch at the pumps
By Alexandra Zavis
South African fuel prices increased on Wednesday for the fifth time this year, due to high international crude prices and a weakening currency.
The 25c increase in the petrol price and 32c increase in the cost of diesel produced much grumbling at the pump.
Hardest hit, however, were the impoverished millions who rely on paraffin - up by 36 cents - to cook and warm their homes in what is now the middle of the winter.
"It's not right," said Nomthandi Kubheka, a 27-year-old mother of four who lives in Soweto. "Everyone uses paraffin here because there is no electricity."
Khubheka already spends nearly half the R500 a month she earns selling cellphone calls to buy paraffin to cook meals, boil water for washing and heat the corrugated iron room she shares with her children. She also worries about the effect of petrol pr
ices on the cost of public transport.
"If the government could create more jobs, maybe we could afford all these increases," she said.
Petrol and diesel prices have increased 23 percent over the past year to R6,73 and R6,32 per litre, respectively. Paraffin has increased 28 percent over the same period to R4,88.
The high fuel prices have raised concern about inflation, currently averaging about four percent. And more increases are likely if the rand continues its downward slide against the US dollar, the South African Petroleum Industry Association has said.
The price surge has had little effect on petrol consumption. But analysts at the Johannesburg-based consultancy Econometrix calculate every cent increase absorbs R9-million per month that could have been spent elsewhere in the economy.
Fuel prices in South Africa are regulated by the government and adjusted monthly in relation to currency moves and the price of refined products.
The recent price hikes have contributed to the government's growing interest in encouraging alternative fuel sources, including ethanol and methanol. - Sapa-AP
Posted by: www.SouthAfrica-CarHire.com
News Source: www.iol.co.za
