Stellenbosch drivers are concerned about the impact another fuel price hike will have on their income. Petrol and diesel prices are expected to rise on Wednesday, 2 September, according to a media statement released by the department of mineral and petroleum resources.
Petrol 93 and 95 are expected to increase by R1.34 per litre; diesel (0.05% sulphur) is going up by R2.93c per litre and diesel (0.005% sulphur) by R3.14.
Motorists are expected to face petrol and diesel price increases on 2 September, as confirmed by the department of mineral and petroleum resources. Jamie Amner, the manager of the BP and Pick ‘n Pay express on Merriman Avenue, expects to see a large volume of motorists fueling up before the price increase. PHOTO: Hae-Won Boesack
“Diesel is sky high and it’s still going up,” said Danie Ruider, a taxi driver who operates between Stellenbosch and Eerste River, driving approximately 260km a day.
The rise in fuel cost was “closely linked to the Iran conflict and concerns surrounding the Strait of Hormuz”, and the rand, which came under pressure as investors sought to protect their assets, said Matima Khosa, a specialist economist at the Nedbank Group.
Uber Eats and Mr. Delivery scooter delivery drivers waiting outside the BP on Merriman Avenue in Stellenbosch. With a small tank, they have to put in fuel daily, according to Simon Manzi, an Uber Eats driver. PHOTO: Hae-Won Boesack
Petrol stations are expecting higher volumes of people as residents prepare for the hike, said Jamie Amner, the manager of the BP and Pick ’n Pay Express on Merriman Avenue.
“It has impacted us negatively,” said Simon Manzi, an Uber Eats driver based in Stellenbosch. “Every rand matters. In a bike, the tank is 5 litres and can be used in a day, it doesn’t last.”
On a busy day, Manzi refills twice a day, spending approximately R280 on petrol.
“If [the fuel price] keeps going up, there will be nothing to work for in the industry,” he said, referring to Uber’s commission cut. “Sometimes I would get R24 to deliver to Ida’s Valley, but then I would only get like R18 or R19.”
“Inflationary pressures are becoming more widespread throughout the economy,” said Khosa.
Rising inflation erodes all consumers’ purchasing power, but the impact is evident for low-income households, poor communities and students, said Khosa.
A fuel pump at the Astron Energy on Merriman Avenue in Stellenbosch the day before fuel prices increase again, on 2 September. PHOTO: Hae-Won Boesack
Diesel prices dropped in June and July, and petrol followed in July and August, said Tracey-Lee Simon, an economist from the Bureau for Economic Research (BER) from Stellenbosch University (SU). Despite these declines, “fuel prices remain well above the pre-war levels”, she said.
If the disruptions by the Strait of Hormuz persist, fuel and transport costs will likely remain elevated, which would force households to adjust their budgets, said Khosa.
But should the Strait of Hormuz become secure and operational by year-end, there would be global and domestic relief from some inflationary pressures, said Khosa.
SMF News reached out to Uber but they did not provide a comment in time for publication.