ERMELO – The Department of Mineral Resources announced that the price of 95 unleaded petrol would increase by R2.33 per litre and that the price of 93 unleaded petrol would go up by R2.43 per litre from July 6.

According to information published by Statistics South Africa, inflation increased from 5.9% in April to 6.5% in May.

Residents must commute to work and conduct errands regardless of price hikes, and local businesses in addition to motorists must bear the burden of these hikes.

According to Muhammed Bhyat, of Sasol, Calstar Caltex and Engen Pitstop Ermelo, fuel vendors have a fixed profit margin in cents per litre and do not benefit from price increases rather, they are negatively impacted as a result of rising operating expenses.

“We carry more expensive stock, which means that we need more working capital and more expensive insurance to insure our higher value of goods and cash. We need to deposit more money or swipe higher value of credit or debit cards as a result of these higher pump prices which directly raises our banking costs,” Bhyat said.

He added motorists are spending roughly the same amount due to their personal budgets, which results in fewer litres being sold.

“Motorists struggle, they often voice their frustrations regarding the rising prices.”