No fuel price relief in sight- economist
Economist at Northwest University, Waldo Krugel, says there are numerous international factors driving up the fuel price in South Africa.
These include a cut in oil production by Saudi Arabia and Russia, as well as tropical storms in the United States.
Krugel says a weaker rand is also a contributing factor.
"The rand/US dollar exchange was around R19 for most of September. This keeps the high petrol and diesel prices that we are experiencing at the moment. Fuel prices will remain high and prevent inflation from decreasing faster.”
The Department of Minerals and Energy confirmed the latest fuel price adjustments on Tuesday.
As of Wednesday, the price of petrol is expected to increase by R1.08c and R1.14c per/litre, while the price of diesel will increase by between R1.96 c per litre and R1.93 c per litre.
FNB economist Ester Ochse says the increase in fuel prices will not only have a major impact on consumers' fuel costs but also put inflationary pressures on basic items, such as food and transport.
Meanwhile, the trade union UASA has urged the government to intervene and protect South Africans from economic and financial challenges.
"Fuel and food prices are among the risks the Monetary Policy Committee identified to contribute to increased consumer price inflation. This leaves fellow consumers at a disadvantage towards any plans they may have leading into the festive season.”
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