Consumers have been dealt another blow this after the Department of Energy announced a huge increase in the petrol price.
The latest hike will see motorists paying 39 cents more for a litre of petrol, taking the price within an earshot of R14 a litre. Diesel will rise by 24 cents while paraffin will go up by between R12 and 16 cents. Earlier this week, the Reserve Bank announced a 50 basis-point hike in interest rates.
Debt Rescue CEO Neil Roets says increasing petrol and food prices, higher interest rates and the additional burden of e-tolls in Gauteng will drive people who have managed to claw their way out of debt back into poverty. The latest increase is mostly due to a sharp drop in the rand/dollar exchange rate.
Chief Economist at Efficiency Group, Dawie Roodt, earlier warned against the ever rising fuel price hikes, electricity going up, and the interest rate that had gone up. He says all these price increases will impact on companies exactly the same as it impacts on individuals and many businesses.
Although the international price of crude oil has come down over December and in the beginning of January, the weak rand has pushed up the import cost.
Econometrix senior economist, Laurie Campbell, says the increased import costs have been passed on to the consumer.