Faizel Patel, Radio Islam – 04-12-2019
Embattled South Africans have to dig deeper into their pockets after the price of petrol went up at midnight on Wednesday.
It is highly likely that the latest round of fuel increases will be followed by similar increases in November and December.
The price of a litre of petrol increased by 22 cents a litre, while a litre of diesel decreased by 15 cents and illuminating paraffin will cost 24 cents less at the pumps.
The Energy Department says the price adjustment is due to the rand exchange rate and global prices.
Speaking to Radio Islam, senior economist Dawie Roodt says while the latest petrol price increase does not bid good news for motorists, there might be a slight reprieve.
“No, certainly I am afraid. I do think there is a possibility that we could see a bit of a cut in the petrol price early next year. But I am afraid yes, another 22 cents a litre increase in the petrol price is certainly not good for us.”
Roodt says South Africa has had a terrible year.
“Economic growth for 2019 will probably be around about 0%. So, we made no progress in 2019 and it’s not that the rest of the country is standing still. The population is still growing at a rate of 1.6% and that means inevitably that unemployment will go up, poverty will keep going up.”
Roodt says there is probably going to be a significant decline in spending in December and January 2020 as people who spent money on Black Friday repay their debt.
Listen to the interview with Dawie Roodt
0 Comments