Rising fuel prices will hit consumers hardest, says Automobile Association


It comes after the Ministry of Mineral Resources and Energy announced the increase in fuel prices for this month.

FILE: The dramatic increases are part of a series of cost-of-living hikes, driven primarily by the recent rise in inflation. Photo: Cape Talk

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

It comes after the Ministry of Mineral Resources and Energy announced the increase in fuel prices for this month.

93 octane petrol 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 expected to rise between R2.30 and R2.31 per litre.

The dramatic increases are part of a series of increases in the cost of living, mainly driven by the recent rise in inflation.

Motorists have not been spared this month with the latest fuel price changes due to take effect on Wednesday.

Layton Beard of the Automobile Association said the latest fuel price hikes will hit consumers hard.

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

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

TIGHTEN THE BELTS

Experts have warned that we will have to tighten our belts as further price hikes will have a ripple effect on our lives.

Interest rates are also expected to rise when the Reserve Bank of South Africa’s monetary policy committee meets again in two weeks.

This while power cuts hit the economy.

Econometrix chief economist Azar Jammine said consumers should tighten their purse strings for a while: “It can be a triple whammy because what’s going to follow are interest rates higher and a slowdown in global economic activity, also due to higher interest rates and the same kinds of factors other than electricity that we are subject to Unfortunately, the outlook for both the world economy and the South African economy over the next six months to a year are not favorable.

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