With just a couple of weeks before the festive season gets in full swing, consumers have been left horrified following the increase in fuel prices on Thursday morning, the fifth time it has been pushed up in almost a year.
However, the increase is expected to have devastating effects, not only on motorists but the rest of the consumers.
Garry Juma, a researcher at Motswedi Securities said in an interview that fuel determines the prices of virtually all the commodities.
This is because fuel is used to transport goods from one place to the other, and the obvious result is that commodity prices will be pushed up.
“We are likely to see an inflationary movement in commodity prices largely because the transport and logistics sector supports almost all sectors of the economy,” Juma emphasized, adding that the quick succession of the fuel prices will definitely hurt consumers’ disposable income.
Likewise, the transport sector, on the other hand, is also feeling the pain of the constant increase in fuel prices.
Speaking to Voice Money in a telephone interview, Gaborone Taxi Association additional Member- Thapelo Dintwe, expressed disappointment over what he termed unfair treatment by authorities on the taxi industry.
His contention is that even following the increase in bus and taxi fares in April this year, the fares are below what the industry dictates should be charged.
“You will recall that sometime in 2011 government engaged some consultants from Spain to look at the tax industry. The guys back then recommended that a taxi should charge P7.00 and a combi P6.50,” charged Dintwe frustratingly.
Spar Botswana Marketing Director Bobby Rushforth says he foresees an increase if food prices due to the increase in fuel prices.