Business Maverick: Cost of living crisis worsens — consumers face petrol price increases of up to R2.57 a litre

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The adjustments in the prices of petrol alone on Wednesday 6 July mean that consumers will be forking out nearly R27 a litre for different grades of petrol — nearly R10 a litre more than a year ago.

Motorists will be slapped with petrol price increases of up to R2.57 a litre on Wednesday 6 July, with further hikes expected in August because the government’s recently-implemented relief measures against higher increases come to an end.

The adjustments in the prices of petrol alone mean that consumers will be forking out nearly R27 a litre for different grades of petrol The invasion of Ukraine by Russia in February has triggered an international oil price shock around the world. Russia is the world’s third-largest producer of crude oil. The developed world has snubbed the oil produced by Russia through economic sanctions, which has pushed international oil prices higher on fears of possible oil shortages.Another driver of the increase in petrol prices in July is that the government has added 75 cents in taxes that are built into the retail price at the pumps.

This is the last phase of the relief measure and another big increase awaits cash-strapped motorists in August if the government doesn’t extend the relief measure. Fuel price increases over the past four months have also been a driver of consumer inflation, which increased to a five-year high of 6.5% in May.

 

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Business Maverick: UK told poorest are ‘brutally exposed’ to cost of living crisisThe poorest families in the UK were left “brutally exposed” to the cost of living crunch after almost two decades of income stagnation, the Resolution Foundation has warned.
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