Why R18 or more per litre for fuel is not far off
New and increased taxes from government will be main culprits burning through your wallet.
The Sunday Independent reports that there is unlikely to be any relief for under-pressure motorists, as the fuel price will simply keep heading north.
Another hike is already on the cards for next month, of between at least 16c and 20c a litre, after reaching record highs this month.
Petrol had never before cost more than R15 a litre.
Although there is no shortage of fuel globally, the US’s trade tariffs, sanctions on Iran and the Venezualan crisis may strain supply in months ahead, though there could be intermittent relief.
The rand has also been losing strength. Economist Mike Schussler told the paper he expected the petrol price to pass R16 before the end of the year.
It could reach R18 by April due to fuel taxes that are expected to increase, as well as a new carbon tax that has been delayed for years.
The Citizen has previously reported that the fuel price could actually soon reach even R20 a litre.
