In the midst of the economic meltdown South Africa is going through, the Energy Department has announced that an increase of 12 cents per litre should be expected on petrol price on Wednesday. Diesel prices on the other hand will get a decrease of 1 and 2 cents per litre.
This announcement by the Energy Department is coming after an increase in fuel price last month. During the previous increase, the Energy Department linked the price hike to the increase in fuel levies in addition to cost of transportation and the average increase placed on the prices of petroleum products in the international markets.
Meanwhile, an economist predicted several hikes in fuel price this year, if the rand does not maintain its rate at getting stronger. Also, the Automobile Association predicted a 12 cents per litre increase on petrol price this month. But suggested that diesel prices could probably drop by around 3 or 4 cents a litre.
In his opinion, economist Dawie Roodt says,
“The only thing that will save us from a further increase in the petrol price soon will be a strengthening currency and fortunately for us the rand hasn’t been doing too badly.”
He also says that everyone should brace themselves for more possible increase as time goes on.
“But I’m afraid this is only temporary and over time I think we have to get used to the fact that petrol prices are going to be much higher that what it is at the moment.”
As severe drought continues to plague the country, economists suggests that South African consumers should budget strictly and get ready for a major hike in the prices of food items, especially on the price of red meat.