Prepare to pay R17 a litre for petrol: Economist
South Africans should brace themselves for another fuel price hike next month. Motorists could be coughing up around R17 for a litre of petrol in October.
Sasfin Securities economist, David Shapiro feels the weaker Rand against the Dollar and international oil prices could push the price of petrol and diesel up even further at local filling stations.
Newswatch's Shaun Ryan spoke to Shapiro about the Rand, economy and what ordinary South Africans can do to survive tough economic times
"This all impacts the oil price, the Rand has depreciated by almost 20 percent."
The
Automobile Association of South Africa also released its mid-month fuel
price projections based on un-audited data from the Central Energy Fund
earlier.
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It is predicting petrol to soar by about R1.12 a litre, while diesel could go up by as much as R1.38.
Spokesperson, Layton Beard says such a hike would be the biggest in South African history by some margin.
Shapiro says ordinary South Africans cannot afford such regular increases.
"Whether a recession or a technical recession, South Africans are getting poorer. The economy is not growing sufficiently to make us richer and put more money in our pockets."
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He says consumers need to focus on tightening their belts.
"Be careful with what you spend. It is not the time to be loose with your money," continued Shapiro.