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Massive petrol increase to hit SA

By admin
30 August 2013

The petrol price is expected to increase by only a few cents next month but October will likely see a massive hike, warned Economist Mike Schüssler, according to the SABC.

He said it is difficult to predict what will happen with the oil price, but the situation looks bleak at the moment.

"I think in all likelihood we are going to see a very big increase in the price of fuel come October, probably 40 to 50 cents,” the broadcaster quoted him as saying.

Schüssler said that the current wave of strikes does not bode well for the rand.

The rand hit a four-year low of R10.50/$ this week amid talks of military intervention by Western powers in Syria.

Lumkile Mondi, chief economist at the Industrial Development Corporation, told BusinessDay that the working class will bear the brunt of higher fuel prices.

He said workers will demand higher wage increases as they try to keep themselves above the poverty line.

All grades of fuel increased by 32 cents per litre in August, while diesel increased by 33c and paraffin by 25c.

In July motorists had to fork out an extra 84c/litre for petrol and 78c/litre for diesel.

Fin24.com