AGRICULTURAL NEWS - The price of diesel and petrol could increase by 5% this month (September); the highest level in four months.
“For agriculture, September is the start of seedbed preparations in the eastern parts of the maize [production] areas of South Africa. Farmers will have [increased spending] on diesel, one of the major input cost lines for a grain farmer,” Maree said.
Maree was commenting on a report by the Central Energy Fund (CEF) of an under-recovery of between 57 cents and 60 cents/litre for petrol and 47 cents and 49 cents/litre for diesel.
“The Base Fuel Price (BFP) is calculated on a daily basis and is either higher or lower than the BFP reflected in the fuel price structures at that time. If higher, an under-recovery is realised, meaning consumers are paying too little for the product on that day,” he explained.
