petrolpumpCape Argus writes that cash-strapped consumers, especially commuters, are in for a wallop of a fuel price increase that will see a steep increase in transport costs.  

According to the Automobile Association (AA), this month’s price hike will also include a large deficit carried over from April.  Petrol is expected to rise by up to 85 cents a litre, diesel by 87 cents and illuminating paraffin by 82 cents.  Golden Arrow’s general manager Derick Meyer noted that the company had carried the burden of rising fuel costs, which increased by 30% over the past year and was projected to increase by 6% next month.  “Regrettably, the company is no longer in a position to absorb these cost escalations and in line with the special conditions of its interim contract with the Western Cape Provincial Department of Transport will therefore be adjusting fares in the coming months,” Meyer indicated.  Janine Myburgh, president of the Cape Chamber of Commerce, said the fuel price increase would have a big effect on the economy, while economist Mike Schűssler observed that it would hit commuters who mostly relied on public transport the hardest.

Get other news reports at the SA Labour News home page