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Speaker 1: Welcome back. It is sixteen minutes before for Rachel and

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Speaker 1: seven or two afternoon drive. So this week has been

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Speaker 1: a week of realizing for me and I think for

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Speaker 1: many other South Africans, particularly around the fuel price hike.

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Speaker 1: I've just been doing the math of how many parts

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Speaker 1: of my life are going to change, right, and I'm

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Speaker 1: realizing every day that there's going to be almost everything

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Speaker 1: is going to increase, just you know, by virtue of

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Speaker 1: just how steep the fuel price hike is, but also

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Speaker 1: the fact that we've been seeing so many statements coming

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Speaker 1: through from different sectors in our economy. If you're a

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Speaker 1: taxi commuter, did you see how steep those increases are

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Speaker 1: going to be for some of those associations. I saw

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Speaker 1: increases of about five rand for some taxi fairs. And

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Speaker 1: one of the sectors of our economy that's likely unbound

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Speaker 1: to see an increase is the construction space. In fact,

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Speaker 1: the construction sector is warning that the latest fuel price

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Speaker 1: increase could seriously threaten infrastructure development and project delivery in

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Speaker 1: the country. That means we're likely to see some delays

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Speaker 1: in some projects as well. This week we saw government

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Speaker 1: announcing short term relief measures after oil after petrol increases

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Speaker 1: rather of about three rand per liter and diesel by

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Speaker 1: more than seven rand per liter. Now we do know

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Speaker 1: that there's going to be We're hoping to see a

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Speaker 1: lot more relief in the next few months because we

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Speaker 1: heard from Finance Minister in No Gorongguana that we may

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Speaker 1: see that levey being reviewed every month. But what does

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Speaker 1: this mean for the construction space as well? Let's speak

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Speaker 1: to Colin Peterson, who's our EW and reporter who's been

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Speaker 1: watching that story. Carlo, good afternoon, Thank you so much

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Speaker 1: for your time.

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Speaker 2: Good afternoon.

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Speaker 1: So what exactly is the construction sector saying about how

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Speaker 1: the fuel price is going to be affecting them? Where

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Speaker 1: exactly are we expected to see increases in that space?

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Speaker 2: Yes, so today we spoke to the Construction Allian Africa,

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Speaker 2: which represents the country's construction industry, and what they're saying

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Speaker 2: is they are warning that the fuel price increase could

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Speaker 2: have serious knock on effects across the sector and the

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Speaker 2: wider economy. This means that roads, housing, schools, and public

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Speaker 2: works projects could become more expensive, slower to complete, or

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Speaker 2: even financially unviable. They're saying that fuel prices don't only

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Speaker 2: affect people at the pumps. They push up the cost

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Speaker 2: of transporting materials, donning heavy machinery, and delivering infrastructure projects.

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Speaker 2: Now many construction contracts. They say, we're not designed to

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Speaker 2: handle sudden global cost shocks, such as those caused by

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Speaker 2: international conflicts and unstable oil markets. And they are warning

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Speaker 2: that these rising fuel costs are not managed properly, they

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Speaker 2: could lead to project delays, dispute between contractors and clients,

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Speaker 2: and uncertainty over whether projects can be finished on time

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Speaker 2: and within budget.

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Speaker 1: And color do we know that or if it's going

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Speaker 1: to be projects that are government projects or if they're

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Speaker 1: going to be private sector of projects or is this

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Speaker 1: just across the board.

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Speaker 2: Well as as as as we know, what we know

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Speaker 2: is that these these projects are across the board from

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Speaker 2: also they have sought to seek a solution to deal

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Speaker 2: with this, and they are calling on government, municipalities, developers, contractors,

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Speaker 2: consultants and financiers to work together more closely. They want

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Speaker 2: to better plan for cost increases, earlier tracking of expenses,

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Speaker 2: and fair shading of risk when costs rise beyond their control.

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Speaker 1: All right, and do we know when they're expecting to

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Speaker 1: start seeing these increases. Is it almost mediate now that

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Speaker 1: we've already seen the increase in the petrol price.

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Speaker 2: Yes, it seems like it's going to be immediate. We

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Speaker 2: know that some of these projects are ongoing, so we're

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Speaker 2: likely to see those impacts happening quite quite soon. All right.

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Speaker 1: Carlo Peterson is the e WIN reporter has been keeping

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Speaker 1: an eye on that story. Thank you so much for

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Speaker 1: your time. It makes me worry a bit because there

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Speaker 1: are some construction projects in my area that I've been

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Speaker 1: keeping an eye on. You know, there's the rare Via

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Speaker 1: bus terminals across the city that some of them have

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Speaker 1: been completed. I think some in Santon have recently been completed,

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Speaker 1: but there are you know, some that are still being constructed.

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Speaker 1: And there's a number of projects actually in my area

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Speaker 1: also in Johannesburg that I've been monitoring quite closely, and

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Speaker 1: I wonder how that's going to be affected now that

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Speaker 1: the construction sector is saying, you know that the petrol

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Speaker 1: price is going to affect them. But I do think

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Speaker 1: that we were expecting this to happen. We know that

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Speaker 1: transport logistics are going to be far more expensive materials

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Speaker 1: because that's going to be factored into the ultimate price

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Speaker 1: of supplies or of material, so we were expecting this

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Speaker 1: to happen. I think for me, what's really shocking and

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Speaker 1: surprising is how we're seeing it happen almost immediately