TJ Strydom
MOTORISTS should brace themselves for another fuel price shock.
The latest statistics by the Central Energy Fund point to a likely increase of 37c a litre of petrol and 49c a litre of diesel next month.
Unless the rand gains ground against the dollar in the next few weeks or the price of crude oil drops, the petrol price will reach an all-time high and hit cash-strapped consumers right in the gut.
The hike will follow on the heels of an 83c increase two weeks ago.
Not only commuters will feel the bite of more expensive fuel, as consumers in general will be hit by a second-round effect when retailers and service providers pass their higher costs on to customers.
Food inflation was 5.3% in July year-on-year, but when StatsSA reveal the consumer price index for last month on Wednesday, a clearer picture will emerge as that month saw the first of the two fuel price increases so far.
Higher inflation makes it increasingly unlikely the Reserve Bank's monetary policy committee will repeat July's surprise interest rate cut.
The committee is set to meet this week and is expected to announce its decision on Thursday.
