Concerns over latest fuel price hike on business: LFWA

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The Liquid Fuels Wholesalers Association (LFWA) of South Africa has voiced apprehensions about the recent fuel price increase and its potential implications for its members’ operational costs.

The fuel price adjustments, which came into effect at midnight, mark the highest increase since July.

Under the latest adjustments, the prices of both 93 and 95 octane petrol have risen by R 1.71 per litre, while diesel now costs between R 2.76 and R 2.84 cents more per litre. Additionally, illuminating paraffin has seen a price hike of R 3.70 per litre.

Peter Morgan, the CEO of the LFWA, expressed concerns about the impact of these increases on their members’ cost structures. He emphasised that independent wholesalers’ most significant operational expense is diesel. Consequently, the surge in diesel prices will lead to increased operating costs for their businesses.

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While acknowledging that the current fuel prices are not the highest ever recorded, Morgan highlighted the abruptness and magnitude of the recent hike, which has raised concerns within the industry. He stated, “I know it’s not going to give anybody comfort, but it’s just been such a massive increase…”

Beyond the immediate financial implications, Morgan also emphasised the importance of ensuring the security of fuel supply. He stressed that the South African economy heavily relies on fuel, and any disruption in its supply could exacerbate existing challenges, such as load shedding.

The LFWA’s concerns reflect broader industry apprehensions regarding the impact of fuel price hikes on businesses and consumers alike. As fuel remains a fundamental component of the country’s economic infrastructure, these developments continue to be closely monitored.

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