The increased fuel prices will see motorists forking out an additional 74 cents per litre to offset a stronger local rand currency against the US dollar, according to Dawie Maree, First National Bank corporate affairs head of information and marketing.
The country’s Central Energy Fund said on Tuesday that the inland price for a litre of 95-octane unleaded petrol will rise 5% to US$1.06 from Wednesday, and diesel almost 7% to $1.00.
Maree said petrol and diesel are used for tillage, harvesting, machinery and transportation, making them critical components for both small-scale and commercial farmers in the country.
He said the fuel hike would add to the “woes of producers” who ensure the country’s food security. “From a farm producer level, we are currently experiencing a late season whereby farmers are still using a lot of diesel,” he added.
Maree said that the increase in the diesel price would have a negative impact on food inflation and the disposable income of consumers, who were struggling to make ends meet.
Requier Wait, head of economics and trade at Agri South Africa, said the imminent hike in fuel prices was of concern because it was an important cost for farmers.
“Farmers are price takers and rising diesel prices increase farmers’ input costs. This lowers the margin they can earn on their produce,” he said.