The Automobile Association (AA) said the anticipated increase in diesel prices will have adverse effects on consumers as fuel price increases impact production costs in many sectors picture:file
Durban — The People Against Petrol Price and Paraffin Increases (Pappi) have raised concerns over the substantial increase in diesel prices.
This is after the AA said the anticipated increase in diesel prices for July will have adverse effects on customers as fuel price increases impact production costs in many ways.
The fuel prices for July will be adjusted on Wednesday.
National convenor Visvin Reddy said Pappi advocates for fair and affordable energy prices, but fears that the increase will have severe repercussions on consumers, particularly those whose livelihoods depend on industries relying heavily on fuel.
“Diesel is the lifeblood of our economy, powering buses, trucks and other commercial vehicles for transportation and logistics industries.
“Any significant increase in the price of diesel will trickle down to impact the broader public through rising costs of food, medical supplies and utilities among others,” said Reddy.
The anticipated hike in diesel prices will place an undue burden on hard-working individuals and families who constitute the backbone of the nation’s economy, he said.
“Industries relying on diesel will face difficulties in maintaining their operations, leading to potential job losses and further economic hardships. Moreover, the surge in fuel costs will inevitably be passed on to consumers in the form of higher prices for essential goods and services, further straining household budgets already reeling from the ongoing economic challenges.
“Pappi urges the government and relevant authorities to reassess their decision regarding the disproportionate increase in diesel prices.
“Our organisation calls for a comprehensive review of fuel pricing policies,” said Reddy.
Pappi urges the government to consider providing targeted subsidies or implementing tax relief for industries that heavily rely on diesel fuel.
“Such interventions would help alleviate the burden on business and consumers, mitigating the anticipated rise in living costs and protecting the most vulnerable in society,” he said.
Meanwhile, the AA said that petrol illuminating paraffin prices are set for a second consecutive month of price decreases. AA spokesperson Layton Beard said that the data is showing that diesel prices are set to increase.
“The breakdown of the data shows that the average exchange rate used in the basic fuel price decreased over June from around R19.50 to the US dollar to around R18.80 to the USD, which accounts for most of the petrol price decrease. But the movement in international oil prices is impacting negatively on diesel, contributing significantly to its expected increase.”
Beard said that according to the data, both grades of petrol are expected to decrease by between 17c/litre and 25c/l, while diesel is expected to increase by around 20c/litre. “Illuminating paraffin is set for a marginal decrease of 3c/litre. A decrease to the price of petrol will provide some relief to embattled consumers. The increase in diesel means input costs in the agricultural and manufacturing sectors are also likely to increase which may result in higher prices for consumers.”
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