Fuel price hike sparks concern, industry calls on government for alternatives

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The CEO of the Fuel Retail Association, Reggie Sibiya, has voiced concerns over the fuel price increases scheduled for September, emphasising the potential impact on both businesses and consumers.

Sibiya has called upon the government to explore alternative measures to address these fuel price hikes.

According to the Department of Energy, the forthcoming increases are attributed to a combination of current local and international factors. Petrol prices for both 93 and 95 octane will see a rise of R1.71 per litre, while diesel will see an increase ranging from R2.76 to R2.84 per litre. Additionally, the cost of illuminating paraffin will surge by R3.70 per litre.

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Sibiya highlighted that the current 5 cents per litre wage increase represents merely 1.7% of the total price increase on diesel. He further noted that after factoring in the wage increase, the wage component comprises only 4% of the total pump price for petrol, underscoring its insignificance in relation to the overall price.

In response, Sibiya stated, “FR8 does not believe this is something that we should be focusing on. We believe that the government should be looking at more inclusive ways of how to deal with these price increases.”

As the fuel price hikes draw closer, the fuel industry and consumers are keeping a close watch on developments, with the hope that the government will explore alternative strategies to mitigate the impact on the economy and the pockets of everyday citizens.