South African were hit with another petrol price increase this week, dealing a triple blow to residents in Joburg and Cape Town and other municipalities who will also see their water and lights bill go up in July.
According to the latest announcement from the Department of Energy, the petrol price increased by 26 cents a litre for 93 octane, and 23 cents a litre for 95 octane on Wednesday, with diesel (0.05% sulphur) hiked by 26 cents per litre.
The department attributed the increase to the rand/US dollar exchange rate, decrease in the prices of crude oil and the import prices of petroleum products – making it four consecutive months (since April) that South African motorists have paid more at the pumps.
|Fuel||June official||July official|
|0.05% Diesel (wholesale)||R14.19||R14.45|
While this increase is lower than expected, a large number of South Africans will still feel that their pockets are slightly lighter at the end of this month due to rates increases across a number of municipalities.
Notably Cape Town and Johannesburg residents can expect to pay more for water and lights from 1 July.
- Electricity: 8.1%
- Water and sanitation: 19.9%
- Refuse: 5.7%
- Property rates: 6.5%
After significant debate, Cape Town recently announced that it had cut down on some of its proposed tariff hikes, having received a number of complaints from residents.
In response to these complaints, the City of Cape Town broke down the major increases, as listed above.
However, the city noted that in the case of water, sanitation and electricity, the tariff increases have not been applied evenly across the different tariffs – and in the case of water and sanitation, the various tariff levels applied during different levels of water restrictions.
“Customers will therefore experience higher or lower increases for water and electricity depending on how much they consume, the specific tariff applied, and the level of water restrictions in place,” it said.
“The drought resulted in a substantial revenue shortfall for the water and sanitation service in the 2017/18 financial year, and necessitated that the city invest in augmentation schemes ahead of schedule to increase the resilience of the water supply system to similar droughts in future,” it said.
“With regard to property rates, one must remember the 6,5% increase applies to the cent-in-the-rand that is charged against the property value. It does not necessary equate to a 6,5% adjustment in the rates billed, due to the various rebates provided, or the fact that a property value could have changed in the interim.”
You can find a full breakdown of the tariff increase here.
- Electricity: 7.2%
- Water and sewer: 13.2%
- Refuse: 6.2%
- Property rates: 0%
Despite Cape Town’s widely-reported battle with water over the past few months, the City of Johannesburg has also come into the spotlight for some steep increases in recent years.
To combat this, the city announced that it would be freezing property rates increases this year.
You can find the complete break down of increases as tabled in the cty’s budget below.