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June petrol price hike: Motorists to feel the pinch at midnight

Jun 5, 2018
June petrol price hike: Motorists to feel the pinch at midnight

If you haven’t topped up your petrol tank as yet, this afternoon is the time to do so - as the petrol price goes up by 82 cents a litre at midnight.

The price of petrol is set to go up by a massive 82 cents a litre at the pumps tonight.

The Department of Energy announced a 82 cents a litre increase for both grades of 93 and 95 ULP at the pumps, while the price of diesel (0.05% Sulphur) is set to rise by 85 cents and that of Diesel (0.005% Sulphur) will increase by 87 cents a litre.

Nedbank economist Isaac Matshego on Tuesday advised motorists to tighten their belts.

“We are definitely going to feel the pinch. Now is the time to tighten the belt. Hopefully some of these increases are going to be reversed in the future,” Matshego told SAnews.

Motorists have been coughing up more at the tanks since April and tonight’s increase will see consumers forking out R15.79 for a litre of 95.

Matshego urged motorists not to drive as often, saying that though there may be some reprieve in the future, this was likely to be significant.

Meanwhile, Bereau for Economic Research (BER) senior economist Hugo Pienaar told SAnews that the fuel hike could lead to increases for public transport users.

“If you are a high income consumer, to pay R50 more for a tank of petrol is not the end of the world, but I think what is concerning especially is for poor households that make use of public transport. These increases in the last couple of months are likely to spill over into higher taxi and bus fares,” said Pienaar.

Pienaar’s comments come as Golden Arrow Bus Services (Pty) Ltd on Friday announced fare increases for the bus service.

“Regrettably the company is no longer in a position to absorb these cost escalations and in line with the special conditions of its interim contract with the Western Cape Provincial Department of Transport it will therefore be adjusting fares in the coming months,” it said on Friday. - SAnews.gov.za