Commenting on the month-end unaudited data released by the Central Energy Fund on Thursday (September 27th), the AA said it anticipates the price of fuel to rise by a record R1.01 a litre on October second, diesel by a substantial R1.24 a litre and illuminating paraffin by R1.05 a litre.
“[These increases] are the biggest in South African history. The major culprit is South Africa's chaotic economic policy which has left us defenceless against upticks in international oil prices. Excluding months where fuel taxes were hiked, this will be the largest single fuel price increase South Africa has ever experienced,” the AA said.
“The impact inflicted on the economy by such increases may put pressure on President Ramaphosa's recently-announced stimulus package. We estimate this increase could extract a further R2.5bn a month in transport costs from an economy that is already on the ropes. The cost of doing business will go up and consumer disposable income will shrink. We don't believe the economy could grow meaningfully under such conditions”.
By mid-afternoon on Thursday, the Rand was trading at R14.11 to the US Dollar with Brent Crude Oil at $81.11 a barrel.
Used cars for sale in Namibia
