" We will get another decrease but by April we will see big tax increases on petrol," explains Schussler.The table below shows the current petrol price decrease:
|Product||Price : December 2017||Price: January 2017|
|Unleaded 93 (Coastal)||R14.08||R13.79|
|Unleaded 93 (Inland)||R14.49||R14.20|
|Unleaded 95 (Coastal)||R14.27||R13.93|
|Unleaded 95 (Inland)||R14.76||R14.42|
"The strengthening Rand will impact in the sense that inflation will be slightly lower and that is good for consumers and everybody else," adds the economist.Along with this, the lower inflation and interest rates will help people with debt repayments. Although the strong Rand will definitely assist consumers and citizens with lower prices, this might be short-lived.
"I think we will see a weaker Rand again in a couple of months or quarters, as we are probably expecting too much from one man. Also the Dollar is weak and Rand has gained much against the dollar but not quite as much against the Euro or Yen. I am worried that the Rand will stay strong for too long, in the sense that the weak commodity prices for Gold and Platinum are also followed on by the strong Rand."
"I know exact predictions are difficult, but I really do not see the Rand under R13 to the dollar for longer than another six months or so."The longer the Rand stays strong, the worse the repercussions will be on the country.
"We will export less as we cannot compete. We will then steal from other countries because it is cheaper. Even higher tariffs on items such as steel or chickens will not impact as much as the strong Rand at these levels," explains Schussler.The big issue is that South Africans shouldn't take too much advantage of the strong Rand. They should rather focus on reproduction of their own goods. If President Jacob Zuma is impeached before the end of his term in office, the Rand might go haywire. Nobody knows what will happen, in the meantime, enjoy the decrease in petrol and the possible decrease in inflation.