Economists have warned that fuel prices could increase by an estimated R2 per litre in April.
Dawie Roodt, Economist of the Efficient Group said the increase is not good for South Africa as inflation and electricity rates will increase.
“Taxes and an increased road accident levy will add 81 cents to petrol, while a weaker rand could most likely add a rand. Overall, petrol could go up by approximately R2 per litre.” said Roodt.
Roodt lists factors such as the rand weakening against the US dollar, international oil price and tax increase as reasons for the increase in fuel prices.
“It’s possible that the prices will increase throughout the year,” he added, “Low-income households will be especially affected as food prices will also increase.”
The department of energy is set to announce the fuel price adjustment for April by the end of the week.
