Whether we like it or not, transporters cannot absorb the cost of fuel increases. This puts them out of business very quickly, so the fuel increase must be passed on to the client , which is then passed on to the consumer. Disposable funds are decreasing, consumers are being very careful about what they buy, with so-called essentials such as food, medication, power, water and accommodation the focus for most consumers.
There have been calls for the taxes on fuel to be reduced or removed and “collected elsewhere”. Those options will not resolve the underlying issues:the rand/dollar exchange rate — determined by the international financial view of SA.
Until then, our sole dependable form of goods distribution — from producers to manufacturers to market — will be under dire pressure and could collapse when many of our transporters close down operations, solely due to the unbearable cost of fuel. This will affect all transporters, big and small.
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