Rising petrol prices put pressure on fuel retail sector volumes
By Given Majola
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INCREASING fuel prices were exerting pressure on already compromised volumes in the fuel retail sector, the Fuel Retailers Association of Southern Africa (FRA) said yesterday.
The price of both grades of petrol went up by 91 cents per litre and diesel increased by between 54 cents and 55c per litre this month.
FRA chief executive Reggie Sibiya said the sector had not yet fully recovered from the Covid-19 lockdowns.
The fuel increases primarily knocked the cash flows of FRA members.
Sibiya said when fuel prices went up, the working capital requirements increased and the compromised cash flows, which were also due to declining volumes, meant that banks were not as willing to increase working capital allocations.