We’re all going on a bummer holiday
Economist Dawie Roodt expects a steep increase in fuel prices over the peak holiday travel season due to the rand’s depreciation and rising oil prices
Motorists heading off on their summer holidays need to brace themselves for a 30c-40c a litre jump in petrol prices in December.Dawie Roodt, an independent economist, said in a note e-mailed on Monday morning that he expected a steep increase over the peak holiday travel season following the rand’s depreciation since Wednesday’s speech by Finance Minister Malusi Gigaba coupled to rising oil prices as the northern hemisphere goes into winter.Moody’s and S&P Global Ratings are scheduled to update SA’s sovereign credit rating on November 24, and may downgrade the country further, given the bleak picture of the country’s finances provided by Gigaba. This would knock the rand further, making December’s fuel price increases steeper.The government department which sets fuel prices on the first Wednesday of every month, the Central Energy Fund, publishes regular updates to enable economists to predict coming price changes.Although November’s petrol price increase is likely to be modest 4c a...
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