Another Petrol Price Hike on the Way

According to the latest statistics from the Central Energy Fund, consumers could be in for another shock with the petrol price rising again by 37 cents a litre, bringing it to just over R12/litre, TimesLive reported yesterday.

If the Reserve Bank stopped its policy of creating price inflation by keeping the exchange ratio of the Rand lower than it otherwise would be (by cutting interest rates and increasing Rand money supply), the petrol price would today be nearer to R3 per liter than R12.

But you can relax dear readers, a friend tells us that what we should really be focusing on are “real” prices, and that because employee compensation is up more than petrol price increases, you are (actually) better off than before.