Institute of Race Relations warns of big petrol price hike
by Wire Staff,
2016-03-23 10:16:57.0
PREPARE to pay between 70c/l and 80c/l more for petrol from April‚ the Institute for Race Relations (IRR) warned on Wednesday.
The think-thank said "if oil prices remain at current levels"‚ motorists could expect a fuel price hike of at least 41c/l‚ which comes on top of the 30c/l raise in the fuel levy announced in the budget in February.
The institute’s prediction is even more dire than that of the Automobile Association‚ which said last week that‚ going on sustained gains in international petroleum prices‚ "the current picture is of a price increase ranging from 31c-35c a litre for petrol".
Institute for Race Relations chief economist Ian Cruickshanks warned that "such an increase would put further pressure on financially stressed households which were already dealing with the interest rate hike announced by the (Reserve Bank’s) monetary policy committee ... this month".
Mr Cruickshanks said this situation was compounded by "anticipated increases in food prices".
"Collectively ... the stresses being placed on the economy could be read in the lead indicator of the Reserve Bank, which has reached its lowest point since November 2009, and wholesale trade numbers, which must be expected to continue declining‚" the institute said.
On Tuesday data from the Reserve Bank showed that the composite leading business cycle indicator‚ a forecasting device used by the Reserve Bank‚ had declined yet again — down 4% in January from a year ago‚ after falling 3.8% year on year in December.
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The combined fuel levies will add R4.43 to the price of a litre of fuel. Picture: THE TIMES
PREPARE to pay between 70c/l and 80c/l more for petrol from April‚ the Institute for Race Relations (IRR) warned on Wednesday.
The think-thank said "if oil prices remain at current levels"‚ motorists could expect a fuel price hike of at least 41c/l‚ which comes on top of the 30c/l raise in the fuel levy announced in the budget in February.
The institute’s prediction is even more dire than that of the Automobile Association‚ which said last week that‚ going on sustained gains in international petroleum prices‚ "the current picture is of a price increase ranging from 31c-35c a litre for petrol".
Institute for Race Relations chief economist Ian Cruickshanks warned that "such an increase would put further pressure on financially stressed households which were already dealing with the interest rate hike announced by the (Reserve Bank’s) monetary policy committee ... this month".
Mr Cruickshanks said this situation was compounded by "anticipated increases in food prices".
"Collectively ... the stresses being placed on the economy could be read in the lead indicator of the Reserve Bank, which has reached its lowest point since November 2009, and wholesale trade numbers, which must be expected to continue declining‚" the institute said.
On Tuesday data from the Reserve Bank showed that the composite leading business cycle indicator‚ a forecasting device used by the Reserve Bank‚ had declined yet again — down 4% in January from a year ago‚ after falling 3.8% year on year in December.
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