AGRICULTURAL NEWS - The Automobile Association of South Africa is forecasting record increase in fuel prices for October, including a possible R1,38/litre increase in the wholesale diesel price.
The wholesale diesel price for September, ranging from R13,92/litre to R14,45/litre, was 23% up on the price for September 2017.
In many instances, the current price already makes diesel the second highest input cost after fertiliser for the for the 2018/2019 season’s summer crops production, according to Grain SA.
Senior economist at Grain SA, Corné Louw, told Farmer’s Weekly that crude oil price increases in early September along with the weakening rand, were the primary drivers behind the large fuel prices increases expected in October.
Louw added that continued fuel prices increases would not only undermine the profitability of grain producers, but could also contribute to even greater food price inflation.
