{"id":209667,"date":"2017-11-08T09:11:08","date_gmt":"2017-11-08T07:11:08","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=209667"},"modified":"2017-11-08T09:11:08","modified_gmt":"2017-11-08T07:11:08","slug":"massive-fuel-price-increase-expected-in-december","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/209667\/massive-fuel-price-increase-expected-in-december\/","title":{"rendered":"Massive fuel price increase expected in December"},"content":{"rendered":"<p>South African motorists should brace themselves for a massive fuel price increase in December, says\u00a0Hanr\u00e9 Rossouw, portfolio manager at Investec, speaking to Talk Radio\u00a0<strong><a href=\"http:\/\/www.702.co.za\/articles\/279695\/oil-price-at-2-year-high\" target=\"_blank\" rel=\"noopener\">702<\/a><\/strong>.<\/p>\n<p>Rossouw said that an increase in the global oil price &#8211; to 2-year highs of $64 dollars per barrel &#8211; would compound pressures seen in the South African US dollar exchange rate, and push the price of petrol up by\u00a0<strong>around 60 cents in December.<\/strong><\/p>\n<p>The global oil price spiked after the 32-year old crown prince of Saudi Arabia, Mohammed Bin Salman, arrested his political rivals on corruption charges. However, the $64 levels are a bit inflated, Rossouw said, and levels between $55 and $60 are more realistic.<\/p>\n<p>South Africa has seen successive fuel price increases in the past four months, as the South African economy continued to struggle.<\/p>\n<p>According to the Automobile Association, the situation will be exacerbated by ongoing political uncertainty in the country, with the ANC&#8217;s elective conference in December increasing the volatility of the local currency. Following a recent cabinet reshuffle by president Jacob Zuma, the rand weakened to over R14 to the dollar, which will have an impact on December&#8217;s fuel prices.<\/p>\n<p>Another hike in December is likely to have a knock-on effect on inflation over the course of 2018, Rossouw said, but could provide an added impetus to an interest rate hike.<\/p>\n<p>However, he warned that oil demand was still growing, with further increases also a likelihood next year.<\/p>\n<p>South Africa also has to contend with the outcome of the ANC&#8217;s elective conference and ratings downgrades &#8211; which many analysts and economists view and inevitable &#8211; which will put added pressure on the economy and prices in 2018.<\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/motoring\/209623\/e-tolls-possibly-on-the-chopping-block-report\/\" target=\"_blank\" rel=\"noopener\">E-tolls possibly on the chopping block: report<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South African motorists should brace themselves for a massive fuel price increase in December.<\/p>\n","protected":false},"author":10,"featured_media":48793,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[26,3994],"class_list":["post-209667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-headline","tag-petrol"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/209667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=209667"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/209667\/revisions"}],"predecessor-version":[{"id":209685,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/209667\/revisions\/209685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/48793"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=209667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=209667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=209667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}