Fuel hikes threaten Garden Route

Investors flee towards the American dollar in times of uncertainty, which causes the rand to weaken further. A weaker rand causes more expensive imports and places further pressure on inflation.

- Louise Karsten

Consumers are under pressure as higher fuel costs will push up food and everyday expenses.

(Photo: Michelle Pienaar)

Conditions have deteriorated noticeably over the past week with rising oil prices and a weakening rand placing further pressure on fuel costs and the broader economy in the Garden Route and across the country.

This has significant implications for farmers, businesses and consumers, says well-known economist Dawie Roodt.

According to him, international uncertainty due to the conflict between the United States and Iran has driven oil prices sharply higher. "This conflict means that fuel prices, including petrol and diesel, will probably be increased further," he says.

The latest fuel adjustment came into effect on Wednesday 4 March: petrol was increased by 20c per litre, while diesel rose by between 62c and 65c per litre.

Early forecasts indicate that further steep increases are possible in April. Petrol could rise by R4 per litre, with diesel expected to increase by more than R7.

(Johannes Jumat)

Roodt also warns that higher oil prices are driving up input costs such as fertiliser, which could in turn affect food prices.