{"id":716134,"date":"2023-09-05T17:00:00","date_gmt":"2023-09-05T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=716134"},"modified":"2023-09-05T16:19:52","modified_gmt":"2023-09-05T14:19:52","slug":"triple-blow-for-south-africans-this-week-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/716134\/triple-blow-for-south-africans-this-week-2\/","title":{"rendered":"Triple-blow for South Africans this week"},"content":{"rendered":"\n<p>South Africans are set for a bleak start to spring as households face stage 6 load shedding until the end of the week at least, record petrol increases, and the threat of higher food prices.  <\/p>\n\n\n\n<p>South Africans continue to struggle with the cost of living crisis amid harsh economic conditions, and this trend is expected to persist into September.<\/p>\n\n\n\n<p>Battered consumers will face massive increases in fuel prices from Wednesday, which will usher in the highest price hike since July 2022 for petrol and a record increase in the price of diesel. <\/p>\n\n\n\n<p>Food prices continued to climb in August, and there is little prospect of relief at the tills considering the huge increases in fuel &#8211; which impact producers and retailers significantly. South Africans also face the prospect of higher rice prices and increased pressure from changing weather conditions in the months ahead.<\/p>\n\n\n\n<p>Putting a further dampener on these realities is that the country is back to stage 6 load shedding &#8211; the highest stage of load shedding so far &#8211; as the lack of maintenance at Eskom\u2019s generating units catches up with the country.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Record fuel hikes <\/strong><\/p>\n\n\n\n<p>The Department of Mineral Resources and Energy has published the official petrol and diesel price changes for September \u2013 reflecting warnings published throughout August as motorists are in for a hefty price hike from Wednesday, 6 September.<\/p>\n\n\n\n<p>Petrol prices will increase by R1.71 per litre, and diesel will be hiked by between R2.76 and R2.84 a litre \u2013 marking the steepest increase in petrol since July last year and a new record diesel rate. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"G3ppQStlXb\"><a href=\"https:\/\/businesstech.co.za\/news\/energy\/715300\/here-is-the-official-petrol-price-for-september-4\/\">Here is the official petrol price for September<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Here is the official petrol price for September&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/energy\/715300\/here-is-the-official-petrol-price-for-september-4\/embed\/#?secret=BE75XvsqKy#?secret=G3ppQStlXb\" data-secret=\"G3ppQStlXb\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>The expected increases are primarily driven by higher international oil prices, which have risen due to slow demand and decreased output. Reuters reported that analysts expect Saudi Arabia, the world\u2019s biggest oil exporter, to extend its voluntary output cut into October, keeping oil supply tight and prices high.<\/p>\n\n\n\n<p>Another contributor to the massive fuel increases is the rand&#8217;s weak performance. The rand depreciated against the US Dollar during the period under review, on average, compared to the previous period.<\/p>\n\n\n\n<p>The average Rand\/US Dollar exchange rate for the period 28 July 2023 to 31 August 2023 was 18.6731 compared to 18.2801 during the previous period. This led to a higher contribution to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 29.60 c\/l, 31.33 c\/l and 31.58 c\/l, respectively.<\/p>\n\n\n\n<p>Notably, however, is that despite the upward pressure on fuel prices, the Minister of Mineral Resources and Energy approved a retail margin increase of 5.0 c\/l to be effected in the retail price structures of all octane grades of petrol, which he said is necessary to accommodate the wage increases of pump attendants, cashiers and administrative staff at service stations.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Climbing food prices<\/strong><\/p>\n\n\n\n<p>South Africans have long been battling high food inflation, and prices continued to climb in August.<\/p>\n\n\n\n<p>According to Pietermaritzburg Economic Justice &amp; Dignity Group (PMBEJD)\u2019s latest Household Affordability Index for August 2023, the cost of the average household food basket increased by R348.75 (7,3%) from R4,775.59 in August 2022 to R5,124.34 in August 2023 \u2013 reflecting a month-on-month increase of R42.40 (0,8%) since July 2023.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"D0uJsW0bP6\"><a href=\"https:\/\/businesstech.co.za\/news\/finance\/714710\/food-prices-still-hammering-consumers-in-south-africa\/\">Food prices still hammering consumers in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Food prices still hammering consumers in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/714710\/food-prices-still-hammering-consumers-in-south-africa\/embed\/#?secret=6Yu7DmoRA4#?secret=D0uJsW0bP6\" data-secret=\"D0uJsW0bP6\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>These increases in staple foods are well above headline inflation recorded over the same period (4.6% in July), and this is expected to get worse due to the contributing factors of the massive hike set for fuel prices. <\/p>\n\n\n\n<p>The AA said that the increases \u2013 especially diesel \u2013 will have negative consequences for consumers as higher input costs will be recovered through higher prices at the till. <\/p>\n\n\n\n<p>\u201cMotorists will feel the pinch in higher prices at the pumps, but consumers across the board can expect higher prices for goods and services,&#8221; it said. <\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Stage 6 load shedding is back<\/strong><\/p>\n\n\n\n<p>On Monday, power utility Eskom announced Stage 6 load shedding until further notice, making the current economic headwinds sting even more. <\/p>\n\n\n\n<p>Addressing the media on the return of stage 6 load shedding this week, the minister explained that the country is back at the highest stage of load shedding it has hit (so far) due to a double blow of increased planned maintenance and unplanned losses.<\/p>\n\n\n\n<p>\u201cOvernight, a further two units at Lethabo and Matla power stations will need to be shut down for urgent repairs,\u201d it said, while on Sunday, a generating unit each at Kriel and Medupi power stations was also taken offline for repairs.<\/p>\n\n\n\n<p>Several other factors also came into play. Overall, stage 6 load shedding is back because of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increased unplanned losses from several big units going down<\/li>\n\n\n\n<li>Increase planned maintenance post-winter<\/li>\n\n\n\n<li>Increased user demand above the norm<\/li>\n\n\n\n<li>Pumped storage losses<\/li>\n<\/ul>\n\n\n\n<p>Electricity minister Kgosientsho Ramokgopa said that the lack of maintenance at Eskom\u2019s generating units has caught up with the country and that South Africans can expect intensified load shedding to remain \u2013 at least in the short term.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"TIJ4klFXvy\"><a href=\"https:\/\/businesstech.co.za\/news\/energy\/716110\/why-stage-6-load-shedding-is-back-and-why-there-may-be-worse-to-come-2\/\">Why stage 6 load shedding is back &#8211; and why there may be worse to come<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Why stage 6 load shedding is back &#8211; and why there may be worse to come&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/energy\/716110\/why-stage-6-load-shedding-is-back-and-why-there-may-be-worse-to-come-2\/embed\/#?secret=lSKanytqmR#?secret=TIJ4klFXvy\" data-secret=\"TIJ4klFXvy\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/lifestyle\/714322\/air-ticket-prices-to-get-cheaper-in-south-africa-but-theres-a-catch\/\">Air ticket prices to get cheaper in South Africa \u2013 but there\u2019s a catch<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Intensified load shedding, climbing food prices, and record fuel hikes have left South Africans facing bleak prospects ahead.<\/p>\n","protected":false},"author":10,"featured_media":656761,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[5015,1164,14664,853],"class_list":["post-716134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-department-of-minerals-and-energy","tag-eskom","tag-pmbejd","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/716134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=716134"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/716134\/revisions"}],"predecessor-version":[{"id":716266,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/716134\/revisions\/716266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/656761"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=716134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=716134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=716134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}