Brace yourself for higher fuel prices, say economists
The price of oil and the rand’s strength against the US dollar are the two primary factors influencing the fuel price
South Africans have been hard hit in 2018 by fuel increases that have weighed heavily on inflation. The slow rise in producer and consumer inflation has quashed hopes for another interest rate cut. Many economists are expecting the Reserve Bank to hike rates next year as headline inflation continues to edge upwards. The price of oil and the rand’s strength against the US dollar are the two primary factors influencing the fuel price. Reserve Bank governor Lesetja Kganyago highlighted both as risks to the inflation outlook at the July meeting of the monetary policy committee. The Central Energy Fund is expected to announce the fuel price adjustment for September on Friday, which will come into effect on September 5. Many economists expect an increase in petrol and diesel prices due to the weaker rand. FNB chief economist Mamello Matikinca predicts prices will rise by about 18c a litre. The price of petrol has climbed steadily since the beginning of the year, from R14.20 for 93 octane,...