Anticipated fuel hike to pile pressure on inflation: Economist
An economist has warned motorists of a bumpy
road ahead.
Dawie Roodt, the chief economist at the Efficient Group, has been commenting on the latest fuel price prediction.
"The international oil price seems to be going up while the rand seems to be under some pressure. So the possibility of a further increase in the petrol price is also a likelihood. It's a little too early to say so I think we need to wait a couple of weeks.
"At the moment we can expect a significant increase in petrol and diesel prices."
Roodt says petrol should go up by between R1.60 and R1.70 a litre this month.
He says those who fill up with diesel should expect an eye-watering jump of around R2.80 per litre.
READ: Fuel prices set for steep jump in September
"This will put upward pressure on inflation and that will probably push up the inflation rate to above 5%. I don't think the SA Reserve Bank is going to increase the interest rates because of this only.
The reality is that the South African economy is in very, very big trouble for a number of reasons. The single, most important reason is that we are simply not capable of creating a good macroeconomic environment.
The reason for that has to do with a weak, incompetent and corrupt government."
