Petrol price and electricity tariffs jump on same day

Just when South Africans started looking forward to their Easter holiday it was spoiled by the announcement that the petrol price and electricity tariffs will increase on the same day.

Yes, this is no April fool’s joke.

As of Wednesday 1 April, the petrol price will increase by a staggering R1,62 per litre while the price of diesel per litre will increase by R1,24.

Reasons again point to higher international fuel prices as well as the weakening of the rand against the US dollar.

But that’s not all – a 12,69 per cent increase in electricity tariffs also was announced.

Power utility Eskom on their website confirmed, “Nersa has approved an annual average price increase of 12,69 per cent for 2015/16. The tariffs as approved by Nersa will come into effect on Wednesday 1 April 2015 for non-municipality tariffs (Eskom’s direct customers) and on 1 July 2015 for municipality tariffs.

“On 28 August 2014, Eskom submitted its proposed 2015/16 tariffs updated to recover the above revenue to the National Energy Regulator of South Africa (Nersa) for approval. Eskom also has submitted structural changes to Nersa for the time-of-use (TOU) tariffs.”

While this isn’t bad enough reports are that mobile communications company Vodacom is looking to increase its subscription fees while City Power will be introducing steep increases in water, sewerage and electricity rates in Johannesburg, also from 1 July.

In an article on BusinessTech economist Dawie Roodt said, “Fuel and electricity price increases may drive the country into a recession.”