LETTER: Fuel price hikes are hitting companies’ cash flow

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All SA companies, from trucking to aviation to tour bus operators, are feeling the effects of rising fuel prices

After visiting some carriers that are dealing with shifting circumstances in their businesses due to increased fuel expenses, memories of dreary to apprehensive facial expressions come to mind. According to a long-haul fleet owner, fuel will now account for 68% of operational costs because of the latest diesel price rise."This will kill us.

This problem isn’t just harming trucking companies; it’s also affecting tour bus operators, aviation and maritime companies. Not just large corporations, but also small enterprises such as school transportation, bus, shuttle and taxi businesses, courier services and car rentals. As the price of gasoline rises more transportation companies will be forced to close or cut back on other vital costs such as vehicle maintenance to stay afloat and keep the wheels moving. This, in turn, will have a negative effect on road safety, as a lack of maintenance will result in an increase in the number of unroadworthy vehicles on the road.

Regardless of how you look at it, the increase in fuel prices is a death sentence for some businesses, consumers and even general road users. During Wednesday’s debate in parliament the DA will amplify the circumstances imposed by the ANC, sharing the killer blows of a heartless national government.

 

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