South Africans can expect to pay R18 for a litre of petrol by next year, warn economists.
Petrol prices soared past the R15 a litre mark this month but there’s no relief in sight, with a likely rise of 16 to 20 cents per litre expected next month.
Globally there is more petrol and diesel produced than the market needs.
However, the US stance on import tariffs, the impact of US sanctions on Iran and the ability of Venezuela to produce oil, were creating a toxic environment.
Next year, the fuel retail price is expected to rise to R18 a litre by April, largely due to the fuel taxes imposed by government.