Johannesburg - May's petrol price will be the third highest
price in SA yet, according to economist Mike Schüssler.
"June may be even higher," he told I-Net Bridge.
Earlier, the Department of Energy announced that the retail
price of all grades of petrol would increase by 29 cents per litre on
Wednesday, May 4.
The price of both 0.05% sulphur diesel and of 0.005% sulphur
diesel would increase by 16 cents per litre.
Wholesale paraffin would increase by 15c a litre, and the
price of illuminating paraffin (SMNRP) would rise by 20c per litre.
Petrol 95 ULP octane in Gauteng would cost R10.25 a litre in
May from R9.96 the previous month.
"Other high prices occurred in July and August 2008
when petrol cost R10.70 and R10.40 per litre respectively.
"Now at R10.25 per litre, this may be the price that
starts the slowdown in consumer spending.
"May's petrol price indicates another 20c per litre or
so in June 2011."
Schüssler said this price was 17.5% higher than last year at
the same time.
"With tolls roads here in Gauteng and the expected high
fuel prices, consumers are going to feel the effect.
"We have now had 18 months of year-on-year increases in
a row, despite the strong rand."
Schüssler noted that the effect the petrol price increases
have had on consumer inflation may have been limited until now, "but
transporters are now going to pass more and more of the higher fuel, wage and
toll gate costs onto the SA consumer".
"One can expect consumer inflation to show a little
increase as a result of second-round effects.
"The SA Reserve Bank will have to be careful as
economic growth will come under pressure from high fuel prices anyway, but in a
low-savings country the fact is we need to encourage consumption restraint or
we will run into balance of payment problems along the way," Schussler
concluded.