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Everything seems to be on the increase, including petrol. May will see you paying out more per tank at the fuel pumps.
The Automobile Association has announced an expected increase at the fuel pumps from May. Motorists are expected to fork out 49c a litre‚ with diesel up 33c, and illuminating paraffin 35c. The AA has attributed the increase to the uncertainty in the markets and the rising and falling of the Rand.
"International oil prices have retreated in virtual lockstep with a strengthening rand. This complicates attempts to forecast a month-end fuel price," the AA said. "After a sharp rise from the end of March‚ international petroleum prices have given up almost all their gains in the past two weeks. Over the same period‚ the rand has unexpectedly firmed to near its pre-cabinet reshuffle levels."
Cabinet Reshuffle Woes
It was predicted, earlier this month, that petrol was going to be raised to 55c a litre, based on the plummeting of the Rand. It's unexpected stabilisation though, has seemed to lessen the impact of the fuel drop. It has stabilised from R13.40 to the current R13.10. International oil prices have also leveled out to under $50, from mid-month rates of about $53. Things would have been different if the Rand had continued with its upward movement. If it weren't for the reshuffle, we would have seen less impact on the fuel price.A Knock On Effect For Other Living Expenses
Due to South Africa being largely dependent on fuel and diesel to power the economy, all basic living expenses are expected to increase. Food prices are expected to be hiked, as well as virtually all other goods. This increase is the first of many economic impacts of the downgrade and junk status rating. Unemployment is expected to skyrocket, and the countries growth is expected to drop. Currently, it is at an all-time low of 1.2%. This is all indicative of foreign investors slowly losing confidence in the country, and economy, and pulling their funds