International oil prices have risen above 100 dollars a barrel(SABC)
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Motorists can expect a fuel price hike of up to 26c a litre next week. International oil prices have risen above $100 a barrel, while the rand has depreciated against the US dollar.
The price of petrol decreased by over 80c a litre in July. Laura Campbell is an economist at Econometrix says: “The expected increase in the petrol price is mainly due to the rise in the oil price in July to levels over $100 a barrel in the previous months.”
She says: “Following the downgrade of Germany to a negative credit outlook by Moodys, one saw a decline in most commodity prices except for oil which actually increased on the back of positive manufacturing data out of China.”
The energy department will announce the new fuel prices on Friday.
Meanwhile, more food price increases can be expected in the next three months. Maize prices have already risen by 25% since last month.
Agricultural expert, Johan Willemse, says grain stocks worldwide are low because of droughts in South America and the United states. South African commodity prices are based on world market prices.
Willemse says consumers are the ones feeling the pinch - especially the poor. He says: “South Africa's case, prices of maize meal will increase as there is just not sufficient also in SA, the world does not have sufficient, so it will work through to the consumer in terms of white maize meal prices, feed cost will increase which will run through boiler industry, milk and pork industry and also bread prices will increase and also cooking oil - so it is a world wide trend that there is insufficient grains and oil seeds.”
