SA consumers warned of knock-on effects from latest fuel price increase
Chief economist at the Efficient Group Dawie Roodt said the economic situation in the country was about to get difficult.
JOHANNESBURG - With petrol prices set to increase by 54 cents a litre at the stroke of midnight on Tuesday, there are concerns that the knock-on effects will be severe for South Africans.
The Department of Energy announced the increase over the weekend. Diesel will increase by 1 cent a litre and illuminating paraffin by 3 cents per litre.
The ministry said rising international oil prices and a stronger US dollar exchange rate had contributed to the latest increases.
Economists said South Africans were tightening their belts on all fronts hoping things would get better after the elections.
However, chief economist at the Efficient Group Dawie Roodt said the economic situation in the country was about to get difficult.
“It is likely that this could lead to further increases in the price of normal transport, taxi fares as an example, are likely to go up as well,” he said.
Roodt said the global price of Brent crude oil continued to have an impact on economies worldwide.
The Automobile Association’s Layton Beard said the increase would have a knock-on effect.
“The issue is, of course, not any single factor but the culmination of the petrol price increases, as well as increases to other prices.”
Meanwhile, the group People Against Petrol and Paraffin Increases was planning to protest against the latest increase on election day, 8 May.