Durban — While diesel and illuminating petrol will decrease this month, petrol will hit workers in the pocket.
This is according to the trade union, United Association of South Africa spokesperson Abigail Moyo, who said that the petrol price increase coming into effect at midnight will push the price over the R23/l mark. This will make it more expensive for workers to get to work and back with petrol-pumped vehicles, while creating a knock-on effect on the price of food and other essential items, he said.
Petrol 93 is expected to increase by 52 cents a litre and unleaded 95 by 56 cents a litre, setting the price of both grades at R23.16 and R23.53 per litre, respectively.
The wholesale price of diesel is expected to decrease by between 31c/l and 57c/l, while the cost of illuminating paraffin is slated to come down by about 32c/l, Moyo said.
“The price drop in diesel and illuminating paraffin will put a spring in the step of consumers who utilise these fuels for personal and business use as we approach the cold season when keeping warm can mean survival,” Moyo said.
“Uasa encourages workers to keep their budgets in check and be moneywise.”
Earlier, Motoring reported that the price adjustments for May are largely driven by higher international petrol prices and lower diesel costs during the month of April.
The rand counted in South Africans’ favour, having appreciated from an average of R18.30 to the US dollar during the previous month to R18.13 during the review period between March 31 and April 25.
The Slate Levy, which compensates fuel companies for fluctuations that take place within the preceding month, sees a decrease of 17.54 cents per litre, softening the petrol price blow and adding to the diesel price relief.
As diesel is a fuel used by the transport industry, these reductions could also soften general inflation in the coming months.
“Diesel is a big input cost in major sectors such as agriculture, mining and manufacturing and an increase here often contributes to increased prices of basic commodities,” the Automobile Association said.
“The current increase in the consumer price index to 7.1% in March and food inflation hitting a 14-year high of 14.4%, plus an increase in diesel prices would have resulted in very unfavourable conditions for consumers,” the association added.
WhatsApp your views on this story to 071 485 7995.
Daily News