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The South African Petroleum Retailers Association , representing the interest of numerous petroleum retailers in South Africa and a proud association of the Retail Motor Industry Organisation, says the discernible surge in average international product prices for petrol, diesel and illuminating paraffin, coupled with a depreciation of the rand against the US dollar, has far-reaching macro- and micro-economic impacts.
“South Africa is grappling with the repercussions of rising global oil prices and a depreciating rand causing pronounced macro-economic challenges,” he says. The widening exchange rate differential has significantly heightened the basic fuel prices, contributing an additional 17.71c/L, 18.74c/L and 18.53c/L to petrol, diesel and illuminating paraffin. “This not only elevates the country’s import bill, but also adds pressure to the trade balance and external debt dynamics,” says Ramolahloane.
Ramolahloane says at a micro-economic level, businesses and households will also be confronted with a more acute impact from this coming increase. “The increase in fuel prices directly translates into higher operational costs for businesses, particularly those reliant on transportation and logistics. For consumers, the surge in fuel prices amplifies the pressure on already strained household budgets.