Remember to fill up your tanks, as the fuel price rises by 3.5 per cent on Wednesday, 5 October.
This means that the pump price for 95 grade petrol will rise from R10.18 to R10.54, while diesel increases 3.8 percent to R9.65. That’s around R18 extra per tank in a Ford Focus and R28 on a 4×4.
The energy department claims that the increase is partly due to the weakening of the rand against the American dollar during the month of September.
Spokesperson for the Uasa trade union, Andre Venter, says the knock-on effect will be painful for the economy: “A price increase of this magnitude will have a definitive impact on inflation, which is already on the rise, and will push up the production price index even further.
“Consumers would have less money to spend, leading to a further decline in the demand for consumer goods. This will in turn have a ‘cascading effect’ on job losses.
“We can only hope that our currency will stabilise, which could mean a lower fuel price towards the end of 2011,” Venter concluded.
Other high prices occurred in July and August 2008 when petrol cost 10.70 rand and 10.40 rand per litre respectively as a result of high world oil prices.
According to Econometrix economist Tony Twine, another big rise in fuel prices could be on the cards for November if oil prices remain around current levels and the rand remains weak. However, he believes that the rand could stabilise or strengthen a bit after its sudden and precipitous fall, which was exacerbated by importers making final orders for the upcoming Christmas period. – Sapa & Reuters