This is according to Professor and academic at the North West University (NWU), Daniel Meyer, who was commenting on the effects of the Act which aims to reduce harmful emissions by introducing the polluter-pays principle. Meyer says the tax which will add nine cents per litre to fuel will have a minimal effect when it comes into effect in June due to stabilising Brent crude oil prices.

“The increase in South Africa will be very limited, maybe a few cents, or even the price will come down,” says the academic.

He further doesn’t foresee the price of oil moving too far out of the $70 to $73 (dollars) per barrel range. He says this as oil is currently trading at $69,10 (dollars) amidst the ongoing trade war between the United States of America (USA) and China, as well as rising tensions between the former and Iraq, both of whom are oil producing nations. This as the Organization of the Petroleum Exporting Countries (Opec) is cutting oil supply to prevent another supply glut. OPEC is made up of over a dozen oil producing nations from across the world.

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