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The petrol price is set to increase for the second time in two months and South Africans will feel the pinch for a long time, even if the petrol price decreases.
The energy department announced that, on Wednesday, 93 and 95 grades of petrol would increase by 26c/l and 23c/l respectively.
Tendai Gwatidzo, economics professor at the Wits School of Economic and Business Sciences said that, although petrol was an input in the production of goods, it was not the only commodity to be considered.
“A lot of inputs go into making sure that a taxi is operating, for instance. Petrol is one of the inputs and its increase will increase the cost of providing the taxi service, which in turn will increase taxi fares and how much commuters pay. Even if petrol decreases in the future, it is highly unlikely that the taxi fare will decrease as well because other inputs must be considered,” he said.
According to Gwatidzo, petrol was the highest running cost in production.
“If the petrol price had not gone up, taxi fares and costs of other goods would not have gone up. Petrol affects everything because transport is something that is unavoidable,” said the professor.
“Petrol does go up and down and if it does decrease at some point what this could do is reduce the rate at which inflation increases,” he added.
Gwatidzo said taxi associations were considerate.
“Taxi associations are sensitive to their commuters and consider them in price increases. They are aware that commuters can choose to use alternative means of transport. So as much as they increase prices, they are sensitive to such issues.”
A statement from the energy department about the adjustment of the petrol price, said that adjustments of petrol prices were based on international and national factors. One of the main reasons given for the adjustment was the depreciation of the rand to the dollar, which led to a higher contribution to the basic fuel price on petrol, diesel and illuminating paraffin.
In a statement on the last petrol price increase, the Economic Freedom Fighters said that workers were being exploited by the South African economy. The opposition party expressed how the increase on the petrol price would be taking South Africa to new levels of economic crisis, which would lead to another increase in food prices, making it hard for people to eat in an already poor and struggling environment.
Fares for taxi routes such as those from Soweto to Johannesburg, Tembisa to Johannesburg as well as Charlotte Maxeke Hospital to Noord Taxi Rank had increased by between R1 and R3.
Noel Shivambu is a taxi driver for the Faraday Taxi Association and he had been driving commuters from Bree Taxi Rank to Honeydew for 12 years.
Shivambu said that the fare on his route had not changed after the last petrol price increase of between 82c/l and 87c/l last month.
“Petrol increased but our prices have not increased. Maybe after Wednesday there will be an increase. I can’t say because we also just get a letter from the office informing us,” said Shivambu.
The 39 year old added that last month’s hike had put him under a lot of pressure with his boss.
“All the owner of the taxi wants is his check-in. All he wants is his R1 000 at the end of every day. I am the one who must put [in] petrol and still make sure that his money balances even with the petrol increase. He must get the money he wants.”
Taxi commuter Msizi Mtshali, who resides in Soweto and travels to Auckland Park for work, said he was feeling the impact of the increase.
“I have a car but I don’t use it much anymore. My car now costs me R750 to fill up so it means next time it will be more. I would rather take the train, which costs me R80 a month.
“My taxi fare increased from R11 to R13 and that two rand makes a big difference even if it doesn’t seem like a lot. It means that now every week I spend R10 more than I did and in a month I spend R40 more,” added the 33 year old.
Spokesperson of the Automobile Association of South Africa, Layton Beard, said that indications at this early stage of July showed that there might be another increase in August.
He added, however, that there were many factors which would influence this.
