The petrol price in South Africa will rise by 45 cents next Wednesday, the energy department said, while diesel will rise by 63 cents.
The price of 93 octane petrol will cost motorists R12.79 per litre, while 95 octane will cost R13.05 per litre in Gauteng province. Diesel will go up by 63 cents to R11.35 per litre, the department said in a statement on Friday.
Debt management firm, Debt Rescue said that the political campaign to get rid of finance minister Pravin Gordhan and the gradual increase in the oil price have all conspired resulting in a substantial increase in the price of fuel.
Debt Rescue CEO, Neil Roets said: “The worst of it is the fact that further price increase are virtually inevitable given the fact that government is going broke and that an increase in the fuel levy will be seen as a lucrative source of income which is going to further increase the fuel price.”
Roets said the gradual improvement in the exchange rate has had little to no impact on the price of petrol and diesel.
“What we need is a stable economy backed by a stable political climate for the economy to grow to create jobs. Governments do not create jobs – the private sector does. Governments also do not create wealth – the private sector does but only if government creates an enabling climate.”
Roets said the mid-term budget did little to inspire confidence and the economy would continue to shrink with severely negative consequences for consumers.
The decision by the NPA to serve a summons on the finance minister and its seemingly hell-bent plans to prosecute him would continue to have a negative impact on the economy resulting in further business closures and job losses across the board.
Independent economist Dawie Roodt said it was a foregone conclusion that there would be a further fuel price increase in December because the green shoots in the economy that the finance minister was talking about were being decimated by bad financial decision by government such as continuing to pour hard-earned tax rands down the bottomless pits of Eskom and SAA.
“It would be foolish in the extreme to think that the ratings agencies are not watching what is happening here with a magnifying glass to determine whether to downgrade South Africa’s bonds to junk status.
“I still believe that there is a very strong possibility that this may be on the cards. A downgrade would mean an almost immediate increase in the interest rates paid by hard-pressed consumers on loans and on their bond repayments,” Roodt said.
|Fuel||October (Inland)||November Price|
|0.05% Diesel (wholesale)||R10.72||R11.35|