ECONOMIC WEEK AHEAD: Fuel price set to rise as data releases loom
SA’s foreign exchange and gold reserves, as well as car sales numbers, will provide important economic clues, writes Andrew Linder
This week sees the first data releases for a year bound to be another challenging one for consumers. Having just endured a large fuel price increase, according to data released by the Central Energy Fund on Friday, another hefty one can be expected in early February. Already, the underrecovery on petrol is 56c-57c a litre, while that on diesel is 44c-45c and illuminating paraffin 42c. The increases follow those in the price of Brent crude, which gained nearly 6% in November and 10% in December. The rises came as Organisation of the Petroleum Exporting Countries and some non-Opec members, such as Russia, decided to cut global production to boost prices. Most analysts believe Brent will average about $60 a barrel in 2017, from about $56 at present. Any weakness in the rand, however, will add to fuel price pressure. Monday sees the release of SA’s foreign exchange and gold reserves, which dropped by a substantial $805m in November to $47bn. The slump came due to a fall in the gold pric...
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