PETROL AND DIESEL PRICES
Fuel levy will be ramped up in budget, economist predicts
The higher fuel levy will have ripple effects throughout the economy and for inflation in general
Fuel prices are expected to rise sharply in the next few months, not necessarily because of exchange rate fluctuations or a spike in the oil price but because Finance Minister Pravin Gordhan is likely to announce a huge hike in the general fuel levy in his budget, Efficient Group chief economist Dawie Roodt predicted on Thursday. On Wednesday, the price of petrol went up 51c and that of diesel by 40c. According to the Automobile Association, the increase was likely to be the first of a series during 2017. If the fuel levy goes up as predicted, it would have ripple effects throughout the economy and for inflation in general. Oil prices rose on Thursday after Saudi Arabia, the world’s biggest oil exporter, started talks with customers about a reduction in crude sales to support a plan by the Organisation of the Petroleum Exporting Countries (Opec) to reduce global supply. Opec promised in November to cut output to prop up prices. Brent crude oil was up 50c a barrel at $56.96 by 2.40pm...
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