Fuel, electricity hikes to hit SA consumers

In a double whammy for long-suffering consumers, motorists will have to dig deeper into their pockets as a fuel hike is expected from tomorrow, while Eskom has hiked its tariff to direct users and municipalities by 15%.

Power increases went into effect for direct consumers from Thursday and will hit municipal customers on 1 July.

Petrol will increase by up to R1a litre for 95 octane and diesel will increase by up to 65.20 cents per litre, depending on its sulphur content. Illuminating paraffin (wholesale) will increase by 34.80c/l, while the retail cost of LPG gas goes up by 48 cents per kilogram.

Minister of Mineral Resources and Energy Gwede Mantashe announced the adjustment of fuel prices with effect from tomorrow. SA’s fuel prices are adjusted on a monthly basis, informed by international and local factors.

International factors include the fact that SA imports crude oil and finished products at a price set at the international level, including importation costs.

Levies on petrol and diesel will increase by 16c/l and 11c/l respectively. Automobile Association spokesman Layton Beard said the effect would not only be felt by motorists, but by all consumers.

“This increase will affect input costs of manufactures, deliveries and transport, which will inevitably be passed on to consumers.”

Meanwhile, Eskom took note of an order by the High Court in Pretoria, which resulted in an electricity price increase.

“This court decision allows Eskom to recover efficiently incurred costs for the production of electricity,” said the power utility.

Economist Lumkile Mondi said: “The increase … due to the poor management of the economy by the ANC is unfair.” It would not make a difference to Eskom’s debt, he believed.

“Eskom is going to be dependent on state support for many years to come.”

asandam@citizen.co.za

For more news your way, download The Citizen’s app for iOS and Android.