Petrol pumps could run dry due to price hike

The price of petrol will increase by 61 cents a litre today

Garage owners have warned that the rush to beat Wednesday's 61 cents a litre hike could leave pumps dry. While many garage owners have placed orders for additional stock, they fear petrol companies may simply not have the capacity to deliver on time.

Fuel stocks at some garages are already low, and the rush to top up is making a bad situation worse. The Fuel Retailers' Association says the big petroleum companies decide when to deliver, and they are at their mercy. Complicating matters is that the demand for diesel has increased due to the current power outages.

Fuel Retailers Association, CEO, Peter Morgan says: "We are worried because of two issues: is there enough product in the country, we hope there is ...; (then) we have no guarantees of getting that fuel because of serious constraints in infrastructure."

The latest hike will see the retail petrol price reach R8.25 inland, making it the first time that petrol has touched the R8 level. The latest increase could see another interest rate hike. Global analysts warn that the 61 cent hike is large enough to push consumer inflation in March to 9.6%, way over the central bank's ceiling of 6%.

Economists say that the poor will suffer the most as paraffin, largerly used for cooking and lighting - goes up 76 cents a litre from Wednesday.