Logistics sector warns of rising costs as fuel prices jump ahead of festive season

SOUTH Africa's transport and logistics industry has warned of higher operating costs, rising consumer prices and pressure on holiday travel budgets after the government announced steep fuel price increases for December.

- YOGASHEN PILLAY

WITH the festive season in full swing, concern has been raised in the logistics sector following an increase in petrol and steep increases in diesel prices. | KAREN SANDISON Independent Newspapers

This comes as both grades of petrol rose by 29 cents per litre on Wednesday, while diesel saw even sharper increases of 65.48 cents per litre for 0.05% sulphur diesel and 82.48 cents per litre for 0.005% sulphur diesel.

The timing, coinciding with the height of the festive season, has raised concerns across the logistics, agricultural and labour sectors.

Gavin Kelly, CEO of the Road Freight Association (RFA), said that the increase in petrol and diesel at the beginning of December is not a good omen and will have an immediate impact on transporters who purchase fuel daily.