AA, economists warn of impact SA's rising fuel costs will have on citizens

Fuel prices will hit record highs this week, with both grades of petrol increasing by R1.46 cents for a litre. Diesel will go up by between R1.44 cents and R1.48 cents a litre while illuminating paraffin increases by R1.21 cents a litre.

Picture: 123rf.com

JOHANNESBURG - The Automobile Association and some economists are warning South Africa’s rising fuel costs and energy crisis are hammering its citizens.

Fuel prices will hit record highs this week, with both grades of petrol increasing by R1.46 cents for a litre.

Diesel will go up by between R1.44 cents and R1.48 cents a litre while illuminating paraffin increases by R1.21 cents a litre.

The steep hike has been attributed to the escalating crisis between Russia and Ukraine.

The Automobile Association’s Layton Beard said that fuel price increases are not a new phenomenon but they were alarming.

"The massive fuel increases that come into effect at midnight on Wednesday night will certainly impact on every single South African given the reliance the country has on fuel, transportation, manufacturing and in the agricultural sector," Beard said.

South Africans will have to dig even deeper into already shallow pockets to settle their electricity bills after Eskom was granted a 9.61% electricity tariff hike.

Economist Dale McKinley said that this would drive the cost of transport, food and general inflation higher.

"This hits people right where it really matters for them and that's why it's so important that, economically, what we do is spread the pain so to speak, so that it's just not the ones at the bottom and the middle who suffer the most," McKinley said.

From Wednesday midnight, the cost of 95 octane petrol in provinces like Gauteng will rise above R21.60 cents a litre, while at the coast it will cost R20.88 per litre.