More hurdles for consumers amid fuel hike

Petrol price goes up by 55c/l tonight

Economist Colen Garrow says consumers face more obstacles as price pressures increase. His statement is in response to the latest fuel price hike which kicks in at midnight tonight. Garrow says rising fuel prices and soaring food prices will put a bigger dent on consumers' budgets.

He says one option to help consumers is if the National Treasury, which has a fiscal surplus, considers cutting the taxes and levies on fuel. However Garow has expressed concern that the latest round of price pressures could see the Reserve Bank raise lending rates ones again next month.

The Minerals and Energy Affairs Department last week announced that the petrol price was going up by 55 c/l. Diesel will go up by between 71 and 74 c while paraffin will go up by 71 c/l. The massive increase comes after petrol went up by over 60 c/l in April.