For the road freight industry – the daily basic diesel cost rose by 32,5% today. That’s an increase of 32,5% of a basic cost input that is between 35% and 55% – depending on the vehicle type used, routes used, congestion, working conditions and fuel consumption.
Whilst not being raised by R10 per litre – the R3 that is being “decreased in the fuel levy” definitely helps – but it will come back in some form or another. Road freight operators are under immense pressure. There are no guarantees that clients will pay the new transport rates – and transporters are in the business of making money, not in the business of making a loss.
Access to cash reserves to pay for high fuel costs is every transporter’s worry – where to find the funding for day-to-day operations or guarantees with fuel suppliers. Consumers will start feeling the pinch of high fuel prices within a couple of weeks – and fuller impact will filter through towards the end of April. The spectre of further fuel increases remains a reality and threat to all operators.
