Just when you thought it couldn’t get any worse, the petrol price is expected to increase next month… again.
On Wednesday, South African’s will be paying a higher petrol price than ever before. The Department of Energy announced a price hike of 26c and 23c on a litre of 93 and 95-grade petrol respectively.
As if it that wasn’t bad enough, fuel is expected to rise next month, again.
Will petrol prices increase in August?
South Africans will be paying over R16 per litre for fuel after 4 July, and while that may seem unfathomable to some motorists, the worst is still to come next month with another price hike on the cards.
Dawie Roodt, an economist at Efficient Group, has reported that petrol may cost up to 25c per litre more come August.
Talking to mybroadband, Roodt said:
“We are now paying more for fuel than ever before in the history of our country and this is going to have a significant impact on the growth of the economy.”
Why is the petrol price rising in South Africa?
A series of petrol price increases have rocked an already shaky South African economy. Consecutive price hikes are blamed on a poor rand to dollar exchange rate, along with the rising price of crude oil.
The CEO of Debt Rescue SA, Neil Roets, has made it clear that a string of petrol price increases will have dire consequences for the average consumer and for the local economy as a whole.
The average South African is already straining under the weight of financial setbacks, including a reduced take-home pay and an increase in VAT.
The knock-on effect of ballooning petrol prices
Another increase in fuel price may be the last straw that breaks the camel’s back. The knock on effect on every consumer-related industry will be catastrophic, with transport costs relating to goods and passengers becoming unaffordable.
Roets has commented on the financial pressure facing South Africans, saying:
“Despite government promises to have another look at the 1% VAT increase, nothing has happened so far. The cost of water and electricity in Johannesburg and Cape Town is increasing, as is the price of food and pretty much everything else.”