17 November 2018


Fuel price hike will affect cash strapped South Africans

by: Nthusang Lefafa   date: 03 july 2018

The majority of South Africans will feel the pinch of the increasing fuel price. The price of fuel is scheduled to go up at midnight on today (Tuesday 3 July).
This is the second time fuel price is increasing in less than two months. By Wednesday morning, it will cost between 23 and 26 cents more to fill up your tank.
An independent financial advisor, Simon Mohapi, told Semphete that this fuel price increase would have a negative impact on the lives of ordinary South Africans.
“South Africans will have to use their money sparingly because the fuel price increase will have a ripple effect, meaning that transport and food prices will also increase in the long run. Due to the increasing fuel price, some companies will experience low profits and this will result in some retrenchments. The country already has a high rate of unemployment and this will definitely lower the living standard of many homes,” he said. 
Mohapi urged South Africans to use their money on basic essentials such as groceries and cut back on spending on some luxury items that they do not really need.
The Department of Energy explained that the main reasons for the fuel price adjustments are due to the Rand/Dollar exchange rate, a decrease in the price of crude oil and a decrease in the import price of petroleum products. 
Here is how the fuel price increases will go:
Diesel 0.05% sulphur and diesel 0.005% sulphur will increase by 26c and 24c a litre. Illuminating paraffin (wholesale) will go up by 22c and the retail price for LPGAS is expected to go up by 37c per kilogram.