With another fuel price hike expected in August – according to the Automobile Association’s Layton Beard – road hauliers and their LCL customers will come under further pressure.
Economist.co.za’s Mike Schüssler told FTW that fuel costs accounted for about a third of transporters’ costs and, while most transport operators either have a long-term contract that excludes the fuel price or they have a contract that allows for periods of fluctuation in fuel prices, every little bit of savings helps in a depressed economy.
Tom Kloza, global head of energy analysis for Oil Price Information Service, said oil costs were projected to rise even further which would see a further global spike in fuel. “This will be the most expensive driving season since 2014,” he said.
With fuel prices pushing past the R16 per litre mark this month, the price of petrol has more than doubled over the past decade – and with the R3.37 per litre added for fuel tax, the total cost of fuel is 165% more than it was in 2008.
Despite the high cost of fuel in SA, it is still considerably cheaper than in many traditional overseas economies. Aside from the DRC, Zimbabwe and Zambia, South Africa’s fuel costs an average of R5 more than that of its neighbours.
