Motorists are to tighten the belts yet again after the Department of Energy announced that the petrol price increased by 86 cents per litre for 93 octane and 88 cents for 95 octane. The increase came into effect at midnight last night.
The department said the strengthening of the rand against the US dollar during the review period had cushioned the price increases by close to 10 cents a litre.
The price of diesel will increase by between 95,7 cents and 97,7 cents a litre‚ while paraffin will cost 76 cents a litre more and liquid petroleum gas 110 cents per kilogram more.
Apart thereof, consumers will also have to endure other price increases this year, as well as hikes in the repo rate and high food inflation. Eskom’s 9.4% electricity tariff hike also came into effect on April 1.
Adrian Goslett, regional director and chief executive officer of REMAX South Africa, said consumers will be required to tighten their belts once again, although many may not have any notches left to tighten.
He noted that economists from banks around the country have warned that the rate is likely to increase by at least 2% during the course of the next two years.
“Considering the rising cost of utilities and food this will negatively impact the property market and affect consumer confidence,” he said.
