South Africans could be paying 40c more for a litre of petrol next month as sanctions against Iran put pressure on world prices and government levy hikes come into effect.
But Durban business leaders say that motorists are “blasé” and have “simply accepted the increases as a way of life”.
On Friday, Petroleum Industry Association head Avhapfani Tshifularo warned that a 40c increase was “definitely” on for April.
He also called for clarity on the country’s stance on US-backed sanctions against Iran, saying that 29 percent of the country’s crude imports were sourced there.
“We are closely monitoring the situation… I wish the government would give us clarity,” he said.
Tshifularo said the 40c hike included 20c for the fuel levy and 8c for the Road Accident Fund levy announced by Finance Minister Pravin Gordhan in February.
Durban Chamber CEO Andrew Layman said Durban motorists seemed oblivious to the price hikes and continued to buy fuel-inefficient cars. “But it looks as though we will soon be paying R12 for a litre of fuel. It’s scary,” he said.
Federated Hospitality Association of SA spokesman Warren Ozard agreed, saying that “people are just accepting it and paying”.
KZN economist Clive Coetzee, however, warned that the Iranian sanctions were the forerunner of a “major inflationary crisis”.
He said airline Velvet Sky’s recent financial difficulties were a direct result of the creeping fuel-price hikes linked to the sanctions. The KZN economy was heavily dependent on fossil fuels and businesses should be prepared to jump to a modern, hi-tech, renewable energy economy, Coetzee said.
Agricultural economist Nico Meyer warned that the increases would affect food security and deepen unemployment as labour-intensive industries such as agriculture, transport and cement production would be heavily affected. At least 24.3 percent of agriculture production consumables were fuel-based, he said.
Tshifularo suggested that an alternative supply from South America would impact on local processing facilities, as the oil was much “heavier”.
Energy Minister Dipuo Peters, in Kuwait for talks last week, said that “a massive fact-finding mission” by a high-level task team was under way.
“We are expecting a comprehensive report at the end of May, when we will present it to the president before tabling it in Parliament. We have already had 10 top-level meetings with different countries who could supply us with oil,” he said. 8Business Report
