South Africa has announced that from Wednesday 3rd April, 2019 it will increase the price of fuel petrol.
This move is expected to take a toll on consumers and the ailing economy.
Petrol will increase by R1.34 cents per litre and R1.31 per litre in the inland provinces.
Economist, Mike Schüssler says an average motorist uses about 130 litre of petrol which will now cost about R177 more from their disposable income.
Mr Schüssler explained that the decision will not only increase inflation rate but it will also mean that the second quarter growth rate will be subdued.
The Automobile Association’s Layton Beard has described the hikes as catastrophic for motorists and consumers saying;
“It’s catastrophic for all road users because as you rightfully say, it’s going to filter into the economy in some way or another. Maybe not immediately, but over a period of time. We will see an increase of costs, in terms of food and other services we use.”
