The recent hike in petrol and diesel prices could soon be followed by yet another increase.
The Department of Energy stated that the price of 93 and 95 grade petrol would increase by 26c and 23c per litre respectively from 4 July 2018.
According to Efficient Group economist Dawie Roodt, this price hike may be followed by an increase of around 25 cents a litre in August 2018.
This expected increase could be even greater if the rand continues to fall or if the price of crude oil rises further.
“We are now paying more for fuel than ever before in the history of our country and this is going to have a significant impact on the growth of the economy,” said Roodt.
Debt Rescue SA CEO Neil Roets said the barrage of petrol price increases would add significantly to the dire circumstances faced by deeply-indebted consumers.
He also pointed to rising living costs as dangerous factors affecting consumer debt.
“Despite government promises to have another look at the 1% VAT increase, nothing has happened so far,” added Roets.
“The cost of water and electricity in Johannesburg and Cape Town is increasing, as is the price of food and pretty much everything else.”
The petrol price increases affect the price of general goods and services, due to the majority of freight being transported by road.