ECONOMY
AA warns of fuel crisis
Posted Wed, 06 Apr 2005
The Automobile Association on Tuesday warned vehicle owners of a
possible fuel crisis in the wake of the increase in fuel prices at
midnight on Tuesday.
Spokesperson Petro Kruger also warned that more price hikes could
be in the pipeline.
"Just looking at what lies ahead in the fuel industry in South
Africa also gives reason for concern," she said.
"With the withdrawal of leaded fuel from the South African
market in 2006, the Department of Minerals and Energy have alluded
to an additional fuel levy of up to 50 cents per litre from 1
January next year to deal with the cost of upgrading refineries.
"This coupled with ever increasing international product prices
does not bode well for the South African vehicle owner and the
economy as a whole."
She said the higher fuel prices were a direct result of higher
crude oil prices, which pushed international product prices up.
This has led to an under recovery of 30 cents a litre in the South
African
petrol price.
Consumers would also feel the higher diesel price in their
pockets. Diesel with a 0.3 percent sulphur content will increase by
56.4 cents a litre, while diesel with a 0.05 percent sulphur
content will increase by 65.4 percent.
"The impact of the high diesel prices will have a ripple effect
throughout the economy of South Africa.
"This increase in excess of the petrol price increase is as a
direct result of the high demand in the northern hemisphere."
Kruger warned that consumers would pay more when filling up
their shopping trolleys, because transport costs formed a
substantial part of the cost of consumer goods.
She said the AA had appealed to role players in the petroleum
industry to start discussions with the business and transport
sectors to find ways to avoid another fuel crisis.
From midnight on Tuesday, a litre of 93 octane petrol costs
R5.02, while 0.3 percent sulphur content diesel is R4.74 and
0.05 percent
diesel is R4.93 a litre.
Sapa
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