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Petrol price shock – April will be tough for SA



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April will be a hard month for South Africa to kill those price hikes are expected to take Karajan impact on consumers and the ailing economy.

Gasoline R1.34 increase by 93 cents per liter Oktay and R1.31 / l for 95 Oktay inland provinces since April. Also kicked in the General Fuel Levy coming 5c ​​/ l and the Fund Levy of traffic accidents on the 15c / l.

"The average motorist uses about 130 liters of gasoline, so it will now cost about R177 more of their disposable income," said economist Mike Schüssler Fin24.

"For most people it is a lot of money, take a dip in spending from other sectors of the economy."

"April will be a difficult month for the SA to price shocks, and it will not be very good for economic growth," he said.

He explained that not only will it take inflation higher, but it will also mean that the second quarter growth rate will be conquered.

And this is happening against the backdrop of crippling load shedding, which added more stress to the struggling economy.

South Africans also have to pay 9.41% more for electricity at the end of April, as announced by national regulators the power of South Africa earlier this month.

"This price increase takes place in an even worse time for consumers who have electricity supplied directly to Eskom, as it coincides with more than 9% increase in electricity tariffs – a double whammy," Cliff Johnston, Vice President of the South African National Union consumers (Sancu) told Fin24.

According to him, the fuel price increases, particularly significant ones, are always bad news for consumers.

"Those with their own vehicles will immediately feel the effect, every time they fill up …. to other modes of transport prices will also increase over time, since the increase on their way costs, although their system," said Johnston.

"The same applies to the price of most other things as well, such as food, where a significant portion of the costs faced by providers of transport-related."

Johnston said, Sancu experience with the & # 39 is that some retailers are using fuel and an increase in electricity prices as a reason to immediately raise its prices, even on existing stocks, before spending worked their way through.

"Our Consumer Council was faced with a sudden increase in the price of goods shopping around using the Internet and advertisements in local community newspapers as guides. If you find the same thing cheaper elsewhere in your local shopping area, buy it there. "

Since June 2019 Carbon Tax will also be introduced by adding 9 cents per liter in petrol price and 10 cents per liter of diesel fuel.

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