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Petrol price up but OUTA wins Round One of toll battle

As the petrol price is set to go up by 28 cents a litre from next week, the Organisation Against Urban Tolling has won the first round of its battle to prevent electronic tolls from being imposed on Gauteng's freeways and this may force a delay in implementing the tolls and provide a brief respite for road users.

Media groups have widely reported both events.

Business Times points out that the petrol price has risen by R1,61 cents a litre between January and May this year. The Central Energy Fund (CEF) imposed a 28 cents a litre increase on all grades of petrol from 2 May. Diesel will increase by between 8,4 cents and 9,4 cents a litre depending on sulphur content.

More worryingly, though, is the fact that between January and May, the price of petrol has risen from R10,27 cents a litre to R12,22. That's a quarterly increase of more than 20% and implies that, over the full year, the rise in petrol prices will be considerably higher than 20%.

The inflationary impact of the petrol price increase is enormous and it is this, says Business Live that really hurts consumers. Quoting economist Colen Garrow of Brait, Business Live says that the secondary costs will make consumers reconsider spending on other items.

It will also push up the price of all consumer goods, hurting both the rich and the poor as transportation and food costs - even for the most basic commodities - will climb sharply

The CEF has blamed the price rise on a weakening exchange rate of the rand and a rise in the average price of crude oil on world markets.

Meanwhile, Transport Minister Sibusiso Ndebele says e-tolling is here to stay, according to Times Live.

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