Petrol and electricity price hikes are a double blow for stressed consumers
JOHANNESBURG – CONSUMERS will be digging deep into their pockets for petrol and electricity as prices soar to their highest in spite of household income being impacted by the Covid-19 pandemic.
The petrol price breaches the R17 mark today for the first time since late 2018, following hikes of 95 cents and R1 per litre for 93 unleaded and 95 unleaded, respectively.
The depreciation of the rand against the US dollar, from R14.76 to R14.95, led to higher contributions to the basic fuel prices of petrol, diesel and illuminating paraffin. This comes as stiff electricity tariffs kicked off on Thursday after Eskom was granted permission to increase the rate of tariffs by 15.63 percent from April 1.
This means an additional 5.44c/ kWh to the standard tariff for Eskom customers for the 2021/22 tariff year, making the aggregate average standard tariff of 134.39c/kWh. The latest research from the National Credit Regulator pointed out that almost half the 27 million credit-active consumers in South Africa were in arrears.
Debt Rescue’s Neil Roets said these increases were likely to push consumers further in debt following a long Easter weekend of travelling and spending.
“These increases, as well as the weakening rand, are definitely no joke, and those consumers who are already embattled with high costs of living will feel this in their pockets this month,” Roets said.
Economists warned early in the year that a surge in global oil prices, coupled with a weaker rand and the introduction of fuel taxes would mean increased costs at the pumps.
The price of oil per barrel has risen more than 30 percent so far in 2021 as demand picked up on global economic recovery.
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