Tuesday, March 23, 2010

Motorists will have to pay up next month

By Khanyisa Tabata
23 March 2010


The Energy Department says motorists can expect a hefty hike in the price of fuel because of the weaker rand and the introduction of new levies.

Spokesman Bheki Khumalo says the precise increase is speculative at this stage but experts predict that it could be as high as 50 cents a litre.

However, economists say that due to fluctuation in the rand/dollar exchange rate - under-recovery will be at least 25 cents a litre for petrol and 23 cents a litre for diesel.

Under-recoveries occur when the exchange rate is worse than planned, making dollars more expensive, which in turn costs the government more for fuel.

No comments:

Renowned South African poet, Breyten Breytenbach, has died

Renowned South African poet, writer, painter and activist, Breyten Breytenbach, has died. He was 85-years-old. PICTURED:  Breyten Breytenbac...