FUEL PRICE INCREASES
Motorists to be hit by steepest hike in four years
The retail price for 95 octane petrol is set to rise R1.31 per litre inland on Wednesday and R1.26 on the coast
Motorists will this week get their steepest increase at the pumpin four years as the recent slide in the rand and higher globaloil prices are passed on and a hike in government levies takes effect. The retail price for 95 octane petrol is set to rise R1.31 per litre inland on Wednesday and R1.26 on the coast, the Central Energy Fund (CEF) said on Saturday. Diesel prices will rise about 82c. The increases will pile pressure on consumers who are reeling from a value-added tax increase in 2018 and face another bout of electricity price hikes. Prices rise 14% for direct Eskom customers on Monday and for a similar amount for municipal customers on July 1.
Fuel price hikes usually have a second-round effect as wholesalers, retailers and other service providers gradually pass the increases on to their customers. And the hikes are notoriously "sticky" when it comes to inflation — taxi fares that rise when fuel becomes more expensive do not necessarily fall when prices at the pump go d...