Economist says strategy behind 5-cent petrol price increase
Updated | By Steve Bhengu
Economist, Dawie Roodt says government's gesture of stepping in to reduce this month's petrol price increase to merely 5 cents - isn't without a catch.
Economists had projected that the latest fuel cost increase which comes into effect this week would be in the region of 25 cents however in a last-minute manoeuvre, government took the decision to absorb majority of the increase hence why motorists will only pay 5 cents per litre more this month.
Economist Dawie Roodt says South Africans shouldn't celebrate because there are unexplained terms and conditions to government's gesture.
ALSO READ: Another petrol price hike on the cards for August
"There's a good possibility that next time - if there's an increase - it's going to be substantially more because they did not increase it in time - which they should have done - but relied on existing reserves," Roodt said.
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