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Fuel price hikes will hit consumers the hardest, says Automobile Association

4 July 2022 3:00 PM
Tags:
Diesel
Petrol
Department of Mineral Resources
Automobile Association
Fuel Hikes

This comes after the Department of Mineral Resources and Energy announced the increase to the fuel prices for this month.

JOHANNESBURG - The Automobile Association (AA) on Monday said it was concerned about the impact the fuel price increases would have on consumers.

This comes after the Department of Mineral Resources and Energy announced the increase to the fuel prices for this month.

Petrol 93 octane is expected to cost an additional R2.37 per litre while 95 octane will cost an additional R2.57 per litre.

The price of diesel is also set to increase by between R2.30 and R2.31 per litre.

The dramatic hikes are a part of a series of hikes in the cost of living, mostly brought on by the recent increase in inflation.

Motorists have not been spared this month with the latest changes to fuel prices set to kick in on Wednesday.

The Automobile Association’s Layton Beard said the latest fuel price hikes would hit consumers hard.

Despite growing calls to ease the burden on consumers, government has decreased the relief offered to motorists.

The AA said while pressure was building on the government to formulate a solution to the rising fuel costs, short-term relief - while welcomed - was not sustainable.

TIGHTEN BELTS

Experts have been warning that we will have to tighten our belts as more price hikes will have a ripple effect on our lives.

Interest rates are also predicted to be on the up when the South African Reserve Bank’s monetary policy committee meets again in two weeks' time.

This while rolling blackouts chip away at the economy.

Chief economist at Econometrix Azar Jammine said consumers would have to tighten their purse strings for a while: “One can make it a triple whammy because what's going to follow are higher interest rates and a slowdown in global economic activity, also as a result of higher interest rates and the same kinds of factors other than electricity we are being subjected to. Unfortunately, the outlook both for the world economy and the South African economy over the next six months to a year are not favourable.”


This article first appeared on EWN : Fuel price hikes will hit consumers the hardest, says Automobile Association




4 July 2022 3:00 PM
Tags:
Diesel
Petrol
Department of Mineral Resources
Automobile Association
Fuel Hikes

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