Another fuel price hike expected in August

South African motorists are expected to feel the pinch once again as petrol price hikes are expected for August following July’s petrol price adjustment announced by the department of energy, resulting in fuel price hikes, Power FM reports.

The weakening of the rand and the international oil price have a bearing on the increase in fuel prices.

This year’s fuel price hikes have resulted in the transport sector considering tariff hikes.

National Taxi Association spokesperson Theo Malele told Power FM the national taxi alliance would have to think of ways of mitigating the fuel price hikes seen this year.

“We have always been charging charitable fares to our commuters. We are, however, aware that we are servicing the poorest of the poor, and we wouldn’t want them to spend rather too much, even though a lot people think that we as the taxi industry are inconsiderate,” Malele said.

He said, however, if one considered that most businesses increased their prices on a yearly basis, the taxi industry tried to contain such costs.

“Even currently that is the situation, so we are trying not to hit hard on our commuters, but the problem is, it is going to begin to hit hard on us because we may not be able to meet our monthly financial obligations,” he said.

Malele said where the taxi industry was hardest hit was with the maintenance of vehicles as well as monthly financial obligations, which include paying monthly instalments for the vehicles, insurance for them and wages for drivers.

The truckers association said on the radio show they had expected government subsidies, saying in the current economic climate the fuel price hikes had had an adverse effect on the trucking industry with emerging businesses in the sector having to retrench drivers.

The Citizen reported on Friday that President Cyril Ramaphosa’s recent visit to oil-producing nations last week was to ask them to help ease the burden on the South African consumer brought about by the high price of crude oil.

The president announced recently that government would soon announce a package of economic measures to cushion the public from fuel price hikes and the VAT increase.

Calls for the reduction of the fuel price have been made from different sectors of society including political parties such as the IFP and the DA.

ALSO READ: Ramaphosa goes straight to the oil taps to bring down fuel prices

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