Consumers have to tighten their belts as the second half of the year starts with tough increases in essential economic sectors.
Several increases came into effect from July 1, causing consumers to feel the pinch.
As of yesterday, petrol has increased by 44 cents a litre for 93 octane while 95 octane fuel has increased by 41c.
Diesel now costs 4c more a litre and illuminating paraffin has increased by 8c a litre.
Johannes Mokobane of the national Department of Energy said: “The increase in the prices of all the petroleum products is due mainly to the weakening of the rand against the dollar during the period under review.”
Metrorail also announced an increase to its fares, which are calculated per kilometre zone.
On its website, Metrorail states that the increases will help with maintaining trains, renovating stations, increasing the number of trains used over weekend and improving security.
- East London to Mount Ruth weekly and monthly tickets have increased by R4 and R10;
- East London to Berlin weekly and monthly tickets have increased by R30 and R7; and
- East London to Arnoldton weekly and monthly tickets have increased by R3 and R7.
As of April 1, Eskom had already increased its tariffs by 12.69% but the power utility wanted to increase the tariffs again for the 2015-16 financial year.
However, on Monday the National Energy Regulator of South Africa (Nersa) announced that it would not grant Eskom the requested 9.58% tariff increase for the period July 1 2015 to March 31 2016.
According to Eskom’s website, the increase was to fund higher usage of open cycle gas turbines (OCGTs) and cover the cost of buying capacity from the short-term power purchase programme (STPPP) in order to limit the severity of load-shedding and the impact on the economy.
Professor Hugo Nel of Rhodes University’s economics department said such increases carry large weight on consumer prices.
“It will push the overall consumer price index. The economy has not been growing at its full potential in the last five years. These increases mean further pressure on the consumer, who is being squeezed from both sides,” Nel said.
Political analyst Dr Somadoda Fikeni said given the country’s current financial situation there was no short-term solution.
“The weakness is in our energy supply not being reliable. Privatising it will not be ideal. Also, we wait for too long to do maintenance,” he said.
The Daily Dispatch spoke to East London residents, who are feeling the pressure of increases.
Nomawethu Nweba said: “It is very bad. Electricity prices are high.
“And when we buy electricity, we don’t even get it because of load-shedding.”
Gardiuna Ngqeba said many were unemployed and could not afford the price hikes.
“These hikes are too much. The trains and buses are expensive ... Everything is expensive.” — siyab@dispatch.co.za
Consumers feel pinch of fuel, train and energy hikes
Several increases came into effect from July 1, causing consumers to feel the pinch.
As of yesterday, petrol has increased by 44 cents a litre for 93 octane while 95 octane fuel has increased by 41c.
Diesel now costs 4c more a litre and illuminating paraffin has increased by 8c a litre.
Johannes Mokobane of the national Department of Energy said: “The increase in the prices of all the petroleum products is due mainly to the weakening of the rand against the dollar during the period under review.”
Metrorail also announced an increase to its fares, which are calculated per kilometre zone.
On its website, Metrorail states that the increases will help with maintaining trains, renovating stations, increasing the number of trains used over weekend and improving security.
As of April 1, Eskom had already increased its tariffs by 12.69% but the power utility wanted to increase the tariffs again for the 2015-16 financial year.
However, on Monday the National Energy Regulator of South Africa (Nersa) announced that it would not grant Eskom the requested 9.58% tariff increase for the period July 1 2015 to March 31 2016.
According to Eskom’s website, the increase was to fund higher usage of open cycle gas turbines (OCGTs) and cover the cost of buying capacity from the short-term power purchase programme (STPPP) in order to limit the severity of load-shedding and the impact on the economy.
Professor Hugo Nel of Rhodes University’s economics department said such increases carry large weight on consumer prices.
“It will push the overall consumer price index. The economy has not been growing at its full potential in the last five years. These increases mean further pressure on the consumer, who is being squeezed from both sides,” Nel said.
Political analyst Dr Somadoda Fikeni said given the country’s current financial situation there was no short-term solution.
“The weakness is in our energy supply not being reliable. Privatising it will not be ideal. Also, we wait for too long to do maintenance,” he said.
The Daily Dispatch spoke to East London residents, who are feeling the pressure of increases.
Nomawethu Nweba said: “It is very bad. Electricity prices are high.
“And when we buy electricity, we don’t even get it because of load-shedding.”
Gardiuna Ngqeba said many were unemployed and could not afford the price hikes.
“These hikes are too much. The trains and buses are expensive ... Everything is expensive.” — siyab@dispatch.co.za
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