As South Africans prepare for weeks of load shedding ahead, they should also brace for a few more economic punches heading their way.
According to economists at the Bureau for Economic Research (BER), South African households will be hit by higher petrol prices this week, compounding the financial woes brought by municipal electricity tariff hikes that took effect from 1 July.
South Africans should also expect a weaker rand due to the subdued economy. This will invariably feed into the wider economy, having a knock-on effect on the cost of living and various price points in general.
Meanwhile, State power utility Eskom announced load shedding at various stages this week, starting with stage 4 load shedding during the day on Monday, escalating to stage 6 during the evening peak, before falling back to stage 4 overnight.
This rollercoaster schedule will be in effect for most of the week, with the power utility expressing some hope that the situation will stabilise to around stage 2 load shedding by the weekend.
The Department of Mineral Resources and Energy is yet to publish the latest fuel price
adjustments for July, which is expected to take effect on Wednesday (6 July).
Month-end data from the Central Energy Fund pointed to a R1.60-R1.80 per litre hike for petrol and a R1.55 per litre hike for diesel on the cards for the month. However, with the halving of the government’s R1.50 general fuel levy intervention for July, another 75 cents per litre is expected to be added back to the price on top of this.
