Tough times for SA as petrol price rises

APRIL will be a difficult month for South Africa with a slew of price hikes expected to take a punishing toll on consumers and the ailing economy.
Petrol will increase by R1,34 cents per litre for 93 octane and R1,31/l for 95 octane in inland provinces from April. Also kicking in is the general fuel levy going up 5c/l and the road accident fund levy by 15c/l.
“The average motorist uses about 130 litres of petrol so it will now cost about R177 more from their disposable income,” economist Mike Schüssler said.
“April will be a difficult month for South Africans, with price shocks and it will not be very good for economic growth,” he said.
He explained that not only will it take the inflation rate higher but it will also mean that the second quarter growth rate will be subdued.
This also comes on the back of crippling load shedding that added more strain on the struggling economy.
South Africans will also pay 9,41 percent more for electricity at the end of April, as announced by the National Energy Regulator of South Africa early this month.
“This price hike comes at an even worse time for those consumers whose electricity is supplied directly by Eskom, as it coincides with the over 9 percent electricity tariff increase ― a double-whammy,” Clif Johnston, the deputy president of the South African National Consumer Union said.
He said fuel price hikes, especially substantial ones, are always bad news for consumers.
“Those with their own vehicles will feel the impact immediately, every time they fill up … The prices of other modes of transport will also rise in due course as the increased costs work their way though their systems,” Johnston noted. – Fin24