Petrol price increase causes concern
Concerns are growing about the impact of another petrol price hike.
JOHANNESBURG - There are growing concerns about the amount pressure consumers can take following the announcement of yet another petrol price hike.
The Department of Energy announced on Wednesday that all grades of petrol will go up by 28 cents a litre on Wednesday.
Diesel will increase between 8.4 and 9.4 cents a litre while paraffin still used extensively for heating, cooking and lighting will cost 12 cents more per litre.
Economists warned the petrol price hikes as well as the impending e-toll tariffs will affect the prices of food basics, as well as many other products.
"We believe that generally the sweet spot for consumers that we saw last year which fueled very strong retail sales for example will start to moderate," said Renaissance Capital economist Elna Moolman.
Econometrix Chief Economist Azar Jammine said current trends showed consumers had not yet reached the point where they will stop spending.