News / National
Fuel price up 6 percent
07 Feb 2013 at 04:24hrs | Views
The price of fuel has increased by about six percent to about $1,60 a litre.
Fuel traders attributed the rise to rising oil prices on the international and regional markets.
A survey by Business Chronicle yesterday revealed that the pump price of petrol now ranged between $1,61 and $1,57 depending on the location of the service station while diesel is being sold at between $1,40 and $1,37 per litre.
Before the increase, the cost of petrol ranged between $1,49 and $1,51 per litre while diesel cost up to $1,38.
In separate interviews, economic analysts said the increase in fuel prices was likely to trigger an increase in prices of basic commodities.
Economic analyst Mr John Robertson said the continued increase in fuel prices would result in an increase of commodity prices across all sectors of the economy.
"Increase in commodity prices will be caused by the increased cost of delivering goods noting that a significant proportion of consumable goods are imported from outside the country.
"The cost of production and distribution of goods is determined by the cost of fuel hence the delivery of bulky goods will increase resulting in increased commodity prices," said Mr Robertson.
He said the international market prices of crude oil had triggered the fuel price increase.
"We should not be too surprised with the increase in fuel prices since local fuel operators have to pay increased costs in importing and transporting fuel from as far as the Middle East or regionally from South Africa," he said.
Another analyst, Mr Thomas Nherera, said the increase was bound to affect the agricultural and manufacturing sectors since fuel was a major input at both production and distribution level.
"Fuel prices affect the producers at production level, add costs at distribution level, hence affecting the consumer with increased commodity prices.
"Critical is the continued availability of fuel rather than a different dimension where there is no fuel," said Mr Nherera.
He said the continued increase in fuel prices would generally affect the transport sector, which would see a marginal increase in the cost of transporting people and manufactured goods.
"We can only hope that the increased cost in fuel will not result in shortages that will cause inflation with retailers increasing commodity prices," he said.
Fuel traders attributed the rise to rising oil prices on the international and regional markets.
A survey by Business Chronicle yesterday revealed that the pump price of petrol now ranged between $1,61 and $1,57 depending on the location of the service station while diesel is being sold at between $1,40 and $1,37 per litre.
Before the increase, the cost of petrol ranged between $1,49 and $1,51 per litre while diesel cost up to $1,38.
In separate interviews, economic analysts said the increase in fuel prices was likely to trigger an increase in prices of basic commodities.
Economic analyst Mr John Robertson said the continued increase in fuel prices would result in an increase of commodity prices across all sectors of the economy.
"Increase in commodity prices will be caused by the increased cost of delivering goods noting that a significant proportion of consumable goods are imported from outside the country.
He said the international market prices of crude oil had triggered the fuel price increase.
"We should not be too surprised with the increase in fuel prices since local fuel operators have to pay increased costs in importing and transporting fuel from as far as the Middle East or regionally from South Africa," he said.
Another analyst, Mr Thomas Nherera, said the increase was bound to affect the agricultural and manufacturing sectors since fuel was a major input at both production and distribution level.
"Fuel prices affect the producers at production level, add costs at distribution level, hence affecting the consumer with increased commodity prices.
"Critical is the continued availability of fuel rather than a different dimension where there is no fuel," said Mr Nherera.
He said the continued increase in fuel prices would generally affect the transport sector, which would see a marginal increase in the cost of transporting people and manufactured goods.
"We can only hope that the increased cost in fuel will not result in shortages that will cause inflation with retailers increasing commodity prices," he said.
Source - chronicle
