Stronger rand shielded consumers from higher fuel price hike - economists
From Wednesday, motorists will have to fork out 29 cents more for petrol, while the price of diesel is going up 21 cents.
JOHANNESBURG - Economists concede the stronger rand shielded consumers from an even higher petrol price hike but say the latest adjustment will have an effect on inflation and food prices.
From Wednesday, motorists will have to fork out 29 cents more for petrol, while the price of diesel is going up by 21 cents.
The Energy Department made the announcement late on Friday afternoon.
Economist Thabi Leoka says the hike was expected.
“They were saved by, to an extent, the strong currency and if it wasn’t for that we’d be paying a lot more for petrol. We’re also seeing developments in the US through the shaleand Dakota pipeline."
Economist Azar Jammine said: "It is not a huge increase; it amounts to a little more than 2% on the price of petrol and will amount to about 0.1%of people’s expenditure."
(Edited by Winnie Theletsane)