Petrol price siphons R2.4 billion a month out of economy

ED RICHARDSON THE LATEST round of fuel price hikes means that South African consumers, businesses and government are spending R2.4-billion a month more on staying mobile than they were in January 2006. According to Econometrix economist Tony Twine, it costs motorists R9 million a month for every cent that the petrol price goes up, while each cent in the diesel price takes R7m a month out of their budgets. Automobile Association (AA) figures show that, since January 2006, the price of petrol (ULP95) increased by R1.55 or 28% from R5.49 per litre to R7.04 per litre inland in August. This translates into motorists having to pay R77.50 more for each time they fill a 50 litre tank. The wholesale price of diesel (0,05% sulphur content) has escalated by R1.36 or 26% from R5.18 per litre in January to R6.57 per litre in August. Higher fuel prices are expected to be felt at the retail tills.