BUSINESS NEWS

Fuel increase burdens the already stressed consumers!

A fuel price increase this week has addedpetrol pumps to the plight of hard-pressed consumers.

The new fuel prices came into on Wednesday.

Consumers  are already feeling the pinch. This as municipal rates and services increased on Friday.

The costs of refuse removal, electricity, water and sanitation for this financial year have all climbed.

Economics Lecturer at the University of Limpopo, Lavisa Tala, says these increases may have a negative impact on the country’s Gross Domestic Product, or GDP.

“It is correct to say that the cost of living is high. Remember we are households that are spending on consumption and consumption spending is the largest component of the GDP.  So, now if there is an increase in everything, it means aggregate consumption is going to decline affecting the GDP.”

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