Today's Big Stories

3 reasons for the petrol price hike (and why it will hurt more than you think)

The petrol price will increase by 52 cents a litre, while the price of diesel will increase by 76 cents from 1 June.

Chief Economist at the Efficient Group Dawie Roodt explains that the price hike will inevitably lead to inflation and the rise of interest rates.

It's really going to hurt us all. It's going to lead to the increase of other prices and boost the spiral of inflation. Eventually, it will force the Reserve Bank to start increasing interest rates.

Dawie Roodt, Chief Economist at the Efficient Group

He offers three factors which contribute to the petrol price hike:

1. The exchange rate

The exchange rate of the currency has fluctuated due to political uncertainty and the possible downgrade of South Africa from credit ratings agencies.

3. Taxes

An increase in the amount of tax paid towards petrol, in particular the fuel levy.

2. The oil price

The rise of the oil price has contributed most significantly to the rise of the petrol price. It will also result in the rise of transport and food costs.

According to Roodt, the petrol price could see a further hike again, if the oil price continues to rise and the rand remains unstable.

Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Veterans and ANC not on same page about terms of consultative conference

Veterans and ANC not on same page about terms of consultative conference

ANC vets want civil society groups present at the consultative conference, which they want held separately from another meeting.

Top SABC journos applauded for brave testimony

Top SABC journos applauded for brave testimony

EWN's Gaye Davis summarises the evidence of the SABC journalists who appeared before the ad hoc committee in Parliament.

If you're gona be a hero (and smash a car window), make sure you can prove harm

If you're gona be a hero (and smash a car window), make sure you can prove harm

A criminal lawyer explains what leg citizens can stand on if they witness a child or pet locked in a vehicle in risky conditions.

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

SABC 'in contempt of court' if Motsoeneng reports for duty, says DA

The DA's James Selfe says it is not clear whether SABC's Hlaudi Motsoeneng will be either fired or suspended pending an inquiry.

Motorists might have to brace themselves for another petrol price hike - expert

Motorists might have to brace themselves for another petrol price hike - expert

A high oil price and a weak rand is not good news for South African consumers, explains economic expert Kevin Lings.

Why petrol stations have fuel shortages when price hikes loom

Why petrol stations have fuel shortages when price hikes loom

Fuel Retailers Association CEO Reggie Sibiya shares why motorists who fill up the night before an increase often won't find petrol

Popular articles
Is taking items from the hotel room stealing?

Is taking items from the hotel room stealing?

Tsogo Sun Cape regional manager explains which items are free to be taken home by guests and why.

Why SA lost the Rugby World Cup bid: 'It is all about the money'

Why SA lost the Rugby World Cup bid: 'It is all about the money'

Stephen Grootes spoke to rugby writer and commentator Andy Capostagno.

Soldiers detain Robert Mugabe

Soldiers detain Robert Mugabe

Grace Mugabe may have fled to Namibia. Bruce Whitfield interviews political commentator Rashweat Mukundu.

I think we are going to witness a coup d'état in slow motion - Zim journalist

I think we are going to witness a coup d'état in slow motion - Zim journalist

According to reports in Zimbabwe, the military has taken over and has been making public announcement since Tuesday night.

WATCH: Innovative spray limits toilet flushes and saves water

WATCH: Innovative spray limits toilet flushes and saves water

Loo Me is a simple yet effective scented foam that takes the yuck out of "mellowing" toilets preventing multiple flushes.