- Fuel is set to increase at the end of the month
- This will lead to reduced government revenue, among other outcomes
- The increase is also expected to drive up the costs of some goods and services
Experts predict that the fuel increase in May will hit many South Africans hard.
The general public will likely feel the pinch, but equipment manufacturers and fuel companies will see the increase bite into their profits.
As motorists ride-share and find other ways of using less fuel, fuel companies can expect sales to decrease.
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The impact of the price increase will be felt in various sectors of the economy. For example, government revenue from fuel sales is expected to decrease as citizens purchase less fuel in order to make up for the price increase, according to News24.
In addition, the cost of various goods and terms is expected to increase as a result of the fuel price hike. This is because transport costs will go up and manufacturers will be forced to up prices in order to offset this increased expenditure.
Although few motorists will be pleased with the increase, it is predicted to have some silver linings. For one, the increase will pressure people to purchase more economical and fuel-efficient vehicles, including hybrids and other more sensible cars.
Additionally, a decrease in fuel consumption will have a small positive effect on the environment, due to reduced carbon emissions, Briefly.co.za has gathered.
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