The higher cost of petrol is likely to put small & medium businesses in South Africa under further pressure in a tight economic environment of rising inflation, says Viresh Harduth, VP at business software developer Sage Africa & Middle East.<\/p>\n
From September, the price of all grades of petrol has increased by 67c\/litre, adding to the steep petrol price and fuel levy increases we have seen over the course of the year.<\/p>\n
“Depending on your business, the petrol price could have a significant impact on your profitability,” said\u00a0 Harduth. “If you run a fleet of vehicles for deliveries and collections, you\u2019ll feel the direct cost straightaway. If you outsource to a logistics company, you\u2019ll know that a price increase looms in the future.”<\/p>\n
There are also the indirect knock-on effects of the fuel price on your suppliers\u2019 operating expenses, your customers\u2019 disposable income and your team\u2019s living expenses, said Harduth.<\/p>\n
Sage warned that the knee-jerk reaction may be to pass higher costs on to customers and clients. “In tough economic times, cheaper alternatives weaken loyalty and you could drive customers away,” it said.<\/p>\n
But smart thinking about fuel efficiency can help you contain costs, while achieving other goals such as improving overall business efficiencies, Sage said.<\/p>\n