Motorists brace for another fuel hike

The price of petrol is set to go up again this month, further increasing the cost of living. Fuel prices have been on an upward trajectory as oil prices went up due to international supply disruptions linked to the Russia/Ukraine conflict.

SABC News caught up with Isaac Chirwa, an e-hailing taxi driver who says the high petrol prices, wipe out the profit he used to make, forcing him to change the way he works.

Chirwa has been operating an e-hailing taxi business for the past two years. He started it as a way to make a living after he lost his job in the banking sector at the beginning of the COVID-19 pandemic.

Chirwa says because of the high petrol prices, he has been forced to offer only short-distance trips as long distances require the use of more petrol.

Being aligned to a company, he works according to the rates the company sets and also has to pay a commission to the company. He says he spends more money on petrol and as a result, he has been forced to cut down on luxuries to enable him to afford the petrol he needs for work.

“It has impacted this e-hailing community negatively because now we need to adjust our working arrangements or our working strategies because now we can try to work locally instead of taking long trips. Because long trips consume a lot of petrol when you are driving fast. Petrol prices are now high, we are now paying more on fuel than what we are getting after we have worked so that has impacted us very negatively,” says Chirwa.

Ripple effects on consumers and businesses

The rising fuel prices have ripple effects on consumers and businesses alike reducing disposable incomes and increasing businesses’ input costs.

“From the consumers’ side, travelling costs will definitely be a burden on their incomes, particularly seeing that public transport fares are also going higher. From the business side, fuel is used broadly in the production and also distribution of goods and other business operations so the ripple effects of higher fuel prices in the economy, it’s not only higher inflation but also a dampening effect on overall economic activity,” says Isaac Matshego, Senior Economist: Nedbank.

South Africans are battling a variety of price increases amidst slow economic growth characterised by high unemployment levels.

VIDEO: Motorists brace for another fuel hike:

The post Motorists brace for another fuel hike appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..

Related Articles

Don't miss