High fuel prices to rocket in June

Kamogelo Olaitan

South Africans must face the reality that there will be a massive petrol price increase at the end of May.

Speaking to The Citizen, economist Dawie Roodt said this will see motorists pay more than R3 extra per litre from June.

Roodt said the three factors that will affect the petrol prices as of next month are the return of the fuel levy, the weak rand and high international oil prices.

“The return of the fuel levy will add R1.50 to the petrol price, the weakened rand will add another R1 to a litre of petrol and the increase in international crude oil prices will add another R1 to the price,” Roodt said.

This means South Africans could see the price of petrol rise by up to R3.50 a litre at the beginning of June.

Roodt added that the petrol price hike is likely to be followed by an increase in the consumer price index.

“Currently the inflation rate stands at 5.9%. With various price increases including the petrol price increase, that process will maintain its momentum and I think it’s a good possibility that we can see inflation above 6% – and even well above 6% – which simply means the Reserve Bank does not have much of a choice but to increase interest rates,” he said.

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