People who use illuminating paraffin for heat and light are facing a steep price hike from midnight.

Illuminating paraffin goes up by a massive R2.85; petrol price by as much as R1.72 and diesel by up to R1.73.

Below is the Central Energy Fund’s press release on adjusted fuel prices:

Consumer Economist at Liberty Tendani Manthimuli has warned that the increases will have severe implications on consumer’s buying power.

The hikes come on the back of increases in oil prices on global markets. Crude sunk to historic lows earlier this year, even trading in negative territory for the first time in history, as the coronavirus forced the world into lockdown.

However, many countries are now opening their economies – even if they have not subdued the virus – because of the severe damage caused to economies by the lockdowns.

South Africa’s economy is one of those battered by the pandemic. Although economic figures for the country’s second-quarter are yet to be released, economists have warned they could be worse than the 2% contraction SA’s sluggish economy has seen in the first quarter.

President Cyril Ramaphosa has also warned that the pandemic has destroyed the economy of one of Africa’s wealthiest countries.