By Penny Sukhraj
Motorists face the 10th petrol price rise of the year when a 12 cents-a-litre increase comes into effect at midnight on Tuesday night, pushing the price to R6,03/litre.
Despite at least two decreases in the petrol price - 45c in January and 24c in June - the CPIX (consumer inflation less mortgage costs) accelerated from 3,5 percent in June to 4,2 percent in July and is set to increase by a marginal 0,1 percent.
If the petrol price goes up, it leads to an increase in the price of almost all other items consumers buy.
"When crude prices are up, we have no choice but to increase prices," department of minerals and energy spokesperson Yvonne Mfolo said on Monday.
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Although exporters had complained bitterly about the strong rand earlier this year, Mfolo said it helped to ease fuel price increases.
Nedbank chief economist Dennis Dykes said it was unfortunate that oil prices were continuing to rise.
"This particular fuel price increase is a fairly small one, but for the first time the price is being pushed over R6, which does not sit well psychologically.
"The consumer has seen the price go up by nearly R2 during the year.
"The increase has altogether been massive and is no doubt hitting the pocket, unless one is being compensated in some other way, perhaps by a good salary increase or a better interest rate."
Dykes said the rise in the price of petrol could mean consumer spending in other areas could decrease.
- This article was originally published on page 6 of Cape Times on October 04, 2005
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