Ricochet News

Expect more fuel price increases: Economists

MAY 30, 2015
Expect more fuel price increases: Economists

Economists are expecting the petrol price to keep rising despite the latest increase of 47 cents and have urged consumers to tighten their belts.

On Friday, the Department of Energy announced that from Wednesday motorists will be paying between 46 and 49 cents a litre more for diesel while consumers will pay between 42 cents more for illuminating paraffin while liquefied petroleum gas will go up by R1 a litre. 

Petrol went up by R1.62 in April, but remained unchanged in May.

Economist Goolam Ballim told EWN that while there are factors that will buffer increases, the latest hike is attributed to the steady hike in the crude oil price. 

“Many consumers will feel that the reprieve was temporary which means we’ll more or less get back to where we were in the middle of last year in terms of the cost of fuel and transportation.”

Economist Dawie Roodt also said the average consumer in South Africa is carrying a very heavy burden at the moment.

“Things do not seem to be lifting up soon.”