Economist warns of massive petrol hike

Reading Time: < 1 minute

Economist Azar Jammine has warned that a massive petrol hike will be inevitable in the coming months.

He says government’s intervention in keeping the fuel price down is an attempt to deal with a serious problem in an inadequate way.

The Department of Energy on Monday said it stepped in after South Africans had witnessed sustained increases in fuel prices for the past few months and this placed a strain on consumers.

The fuel price has increased by about five cents per litre.

“It will clearly be unsustainable to keep capping the fuel price as things stands rights now. We could be looking for an increase of R1.20 per litre next month because of the depreciation of the rand and the rise in international crude oil prices. Thirty cents in a litre was relative a drop in an ocean compared to what could be the case next month,” explains Jammine.

Click below for more…