Economist: Latest diesel price hike 'a real concern'
An economist says the latest diesel price hike has the potential to make life even tougher for already struggling consumers.
Petrol will increase by 4 cents per litre on Wednesday, while the wholesale prices of 0.05% and 0.005% diesel will jump by 23 cents and 27 cents respectively.
Chief economist at Economists.co.za, Mike Schussler, says ordinary South Africans will feel the hike in diesel prices in their pockets.
"Any goods you buy are mostly carried by diesel powered transportation and that is where consumers will feel the impact because food prices will increase."
The Department of Energy says the weaker rand and the higher international oil price are the main culprits.
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Schussler says it will have impact on food prices.
"People are really tired of tightening their belts when it comes to spending, because they are doing it all the time. We are in a situation where people need to be very careful and make good choices of the products and services they buy. People need to be very, very cautious on how they make up their minds."