Cape Town – Energy minister Jeff Radebe announced that the price of petrol will be increasing on Wednesday. In their statement, the Department of Energy says that the increase is mainly as a result of the petrol-exporting countries increasing their prices while the Rand continues to weaken against the US dollar.
From Wednesday, 95 octane petrol will increase by R100 bringing prices to R17.08 per litre inland and R16.49 along the coast. It is reported that diesel will increase by R1.24, rising prices to R15.64 inland and R15.16 in coastal areas. Paraffin will increase by R1.04 per litre.
Trade union UASA expressed their concerns about the effect it will have on South African workers. The increase in price will cause the cost of public transport to become more expensive. Companies that provide basic goods and services will be forced to increase their prices, putting more pressure on the pockets of consumers.
Economists predict that the increase will be felt most by the agricultural sector, one of South Africa’s largest sectors. The sector is already under pressure following droughts around the country. The increase not only means their products will be increased but that their expenses on agrochemicals, fertilizers and pesticides will also increase.
Economists further explained that movements in the oil price are difficult to predict as they are under sanctions by President of US Donald Trump. They are hopeful that the rand will strengthen and that there could be a possible decrease next month.