With fuel price hike, South Africans warned to expect higher consumer prices
South Africans have been put under immense financial pressure due to the COVID-19 pandemic which has resulted in 2.2 million South Africans losing their jobs under the national lockdown.
JOHANNESBURG - With another round of fuel price hikes, the cost of living is set to also rise even further.
From Wednesday, the country has to fork out 81c more for a litre of petrol.
The price of diesel has gone up by between 58c and 59c a litre, while illuminating paraffin costs an extra 59c.
South Africans have been put under immense financial pressure due to the COVID-19 pandemic, which has resulted in 2.2 million South Africans losing their jobs under the national lockdown.
Economist and director at Antswisa Transaction Advisory, Miyelani Mkhabela, said that due to the massive fuel increase, this would have a direct impact on the price of some consumer goods.
“When logistics prices increase, they will shift that increase to retailers and the retailers will shift the prices to the consumers.”
He warned of tough times ahead for the county’s economy.
“When you look now, we are sitting at around 85% government debt.”
The January 2021 Household Affordability Index showed that the average cost of the household food basket increased to around R4,000, more than the minimum wage.