Companies toil hard to produce more fuel

The South African Petroleum Industry Association says fuel companies in the Cape Peninsula have been working throughout the night to replenish filling stations that ran out of fuel stocks yesterday. This follows a last-minute rush by motorists to fill their tanks before the price increase came into effect at midnight last night. The association's head, Connel Ngcukana, says the situation is expected to normalise within the next two days.

South Africans are to begin paying substantially more for fuel from today. The retail price of all grades of petrol rose by 61 cents a litre at midnight yesterday while diesel went up by 78 cents a litre. Last minute fuel deliveries by petroleum companies yesterday prevented pumps from running dry. A volatile rand, persistent high oil prices and an incoming fuel levy will result in another hike next month.

Economists have warned that the high fuel prices will lead to increases in food prices and put more pressure on inflation. This month's hike is the biggest ever.