Media groups have widely reported both events.Business Times
points out that the petrol price has risen by R1,61 cents a litre between January and May this year. The Central Energy Fund (CEF) imposed a 28 cents a litre increase on all grades of petrol from 2 May. Diesel will increase by between 8,4 cents and 9,4 cents a litre depending on sulphur content.
More worryingly, though, is the fact that between January and May, the price of petrol has risen from R10,27 cents a litre to R12,22. That's a quarterly increase of more than 20% and implies that, over the full year, the rise in petrol prices will be considerably higher than 20%.
The inflationary impact of the petrol price increase is enormous and it is this, says Business Live
that really hurts consumers. Quoting economist Colen Garrow of Brait, Business Live
says that the secondary costs will make consumers reconsider spending on other items.
It will also push up the price of all consumer goods, hurting both the rich and the poor as transportation and food costs - even for the most basic commodities - will climb sharply
The CEF has blamed the price rise on a weakening exchange rate of the rand and a rise in the average price of crude oil on world markets.
Meanwhile, Transport Minister Sibusiso Ndebele says e-tolling is here to stay, according to Times Live
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