Petrol hike will hurt
THE petrol price increase announced on Friday will have a painful knock-on effect for consumers and the economy, trade union Uasa said.
"Workers will have to pay more to commute to work and back, and will soon have to pay more for food and other consumer goods," spokesman Andre Venter said.
The department said the retail price of petrol would rise by between 36 and 37 cents a litre on Wednesday.
A litre of 95 ULP (unleaded) petrol in Gauteng would now cost R10,54.
The retail price of petrol 93 ULP and LRP (lead replacement petrol) will increase by 37 cents a litre.
Petrol 95 ULP and LRP would rise by 36 cents a litre.
The price of diesel with a 0,05 percent sulphur content would increase by 35 cents a litre.
The cost of diesel with a 0,005 percent sulphur content would climb by 37 cents a litre.
The wholesale price of illuminating paraffin would increase by 30 cents a litre.
The national retail price for illuminating paraffin would go up by 40 cents a litre.
The increase was partly due to the rand's weakening against the US dollar.
"A price increase of this magnitude will have a definitive impact on inflation, which is already on the rise, and will push up the production price index even further," he said.
Consumers would have less money to spend, leading to a further decline in the demand for consumer goods.
This would in turn have a "cascading effect" on job losses. "We can only hope that our currency will stabilise, which could mean a lower fuel price towards the end of 2011."