61 cents petrol increase hits consumers hard

By Ilhaam Hoosain
05 March 2008

Last night marked the increase of petrol by 61 cents a litre and at 13:15, most petrol stations where out of petrol already.

This is one of three increases that will be taking place the first Wednesday of every month until May. The price people are raking out for petrol is R8, 01c at the coast and R8, 25c inland.

In April, motorists face another hike of 30c a litre in fuel prices and May will see the rise of 11 cents that was announced in the Budget speech last month.

In May 2002, four years ago the petrol price was standing at R4, 39c inland and R4, 26c at the coast. The petrol price has done an approximate 100% jump in four years.

“The petrol price brings in an element of higher prices, which will filter through in all sorts of ways, transport; food prices and all sorts of consumer prices. Everyone is really affected by a higher fuel price, taxi prices, transport etc,” says Economist Professor Anthony Black.

He goes on to say that the increase has had a very negative impact on the economy. Some of the influences on the rising petrol price are due to impact of global oil prices, which have escalated due to rapid global economic growth, supply constraints and also political factors in the Middle East.

Here is what a few people in Cape Town had to say:

“I just think it’s ridiculous, I think people are going to have to stop driving cars.It is really too much at this moment people can’t cope.”

How has the petrol price impacted you?

He said that it has impacted him already and will carry on and there is nothing but to complain and that we can do nothing about it. “I don’t feel too good about it. The petrol and inflation everything is going up. This country is going down rapidly. The economy is going down the loop hole.”

On response to the fact that at the petrol station where he was parked at had no petrol he said that we can’t carry on like this, people’s businesses are going to stand still, the same with the power failures

“Although I am not driving, it is a big problem because everything is increasing and when you are going somewhere you can’t even pay taxi fare because their prices are also going up. It’s a big problem. What can we do?” says a commuter.


Economist Black says: “If the rand strengthened that will bring down the price of petrol and also if the global oil price declined; and what that requires is the increase in supply by the major oil producers or perhaps slower economic growth around the world, which reduces the demand for oil.”