How fuel prices will affect consumers and business

Posted on: May 3, 2012 by admin

The recent increase in fuel prices worldwide has left consumers outraged, as the higher prices have come at a time when taxation is increasing on top of everything else.

In South Africa, the increase has been said to be to cover costs that include maintenance of infrastructure, RDP housing and the new e-Toll system in Gauteng. However, apart from the impact on the direct fuel price, many other industries are also affected by the price changes, which in turn trickle down back to consumers in the form of higher prices across the board.

For instance, every commercial industry in the country that relies on any form of transportation find themselves having to increase their prices in order to maintain their profits. Farmers that use transport companies have to pay extra to get their produce into cities. Security companies that use vehicles to...