Diesel Cost Surge of 32.5% Puts Road Freight Sector under Immense Pressure
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.
By Gavin Kelly, CEO of the Road Freight Association
Gavin Kelly, CEO of the Road Freight Association
Website: www.rfa.co.za
