Get ready for big fuel price hike: report

South African motorists should prepare themselves for a fuel hike of as much as 70 cents, thanks to a continuing rise in oil prices and weaker rand, BusinessDay reports.

According to Econometrix economist Laura Campbell, speaking to the paper, the country is currently seeing an under-recovery of 70 cents per litre, which “must come through in October”.

Mike Schussler, economist at Economists.co.za, pegged the October increase at 50c/l, the report said.

In August, the fuel price reached new record highs to R13.55 a litre (inland) – and if the projected increases are accurate, motorists can expect to pay R14.05-R14.25 per litre in October.

An expected increase will largely come as a result of the price of brent crude oil jumping to a high of $115 a barrel this week on the back of increasing tensions in Syria.

Adding to the fuel price woes, unrest in the mining sector and the initiation of South Africa’s “strike season” has pushed the rand into weaker territory, hitting a low of R10.50 to the dollar – the lowest point since before the global economic crisis in 2008.

The rand was trading at R10.33 in morning trade on Thursday (29 August).

More on the fuel price

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Get ready for big fuel price hike: report