Concerns over rising cost of living after power, fuel price hikes kick in

Business

Johannesburg – With significant price increases now facing consumers, there are concerns that the cost of living will increase dramatically, making it near impossible for many to make ends meet.

Fuel prices shot up at midnight, with 93 octane petrol increasing by 95 cents a litre, while 95 octane increased by R1.

Diesel increased by between 63 and 65 cents.

The cost of electricity also went up by 15% this month.

There are fears that households would battle and that some businesses may not survive.

With many people losing their jobs and battling to provide for their families, South Africans were now also facing a double blow – record fuel prices and increased electricity tariffs.

Chief Economist at Stanlib Asset Management, Kevin Lings, said that this could also be the final blow for many businesses.

“And my suspicion is that we are at a point now that this is too big an increase for everybody to just absorb yet again.”

Maya Fischer-French, a personal finance expert, said that when looking at fuel prices, the taxes were concerning.

“Of the R17 per litre we are going to be paying at the pump, R6.15c will be taxed. What’s also concerning to me is that this month we will see a 15 % increase in the cost of electricity… and fuel and electricity are essential items.”

There is agreement that the knock-on effect to inflation could be severe.

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