NWU economist - Easter petrol shock’s blow softened

Annette Willemse -- Tue, 03/17/2015 - 13:14

NWU economist - Easter petrol shock’s blow softened

Don’t make a mountain out of a molehill – especially when it comes to rumours about the imminent hike in the petrol price. This is the advice from Dr André Mellet, well-known economist and lecturer within the School of Economic Sciences on the Vaal Triangle Campus of the North-West University (NWU Vaal).

According to Dr Mellet, his research indicates that the much anticipated price hike might be considerably less than the expected R2.00 a litre, as was speculated earlier in the month. 

According to Mellet, a former winner of the prestigious Absa/Beeld Economist of the Year Competition, all indications are that the hike in the petrol price will amount to just more than R1.00 a litre. This will cover the increase of 80.5c in the fuel levy that will feed into the Road Accident Fund (RAF) that is set to kick-in at the end of the month. “It is important to provide consumers and business with the correct estimates, since this information is used to plan and henceforth the consequences of incorrect data will hit home hard”, says Mellet.

But why the petrol hike panic? According to Mellet the price of Brent crude oil increased sharply in February (from $52 to $62 a barrel) and then suddenly decreased over the last couple of weeks to $54 a barrel. This together with the weakening of the rand against the American dollar – to R12.39, are factors can be attributed to the current uncertainty in the financial market. 

Dr Andre Mellet

More about Dr Andre Mellet

Dr Mellet has been lecturing in Economics at the NWU Vaal for more than two decades and is a respected financial analyst and commentator who has submitted several articles for the Financial Planners Institute (FPI).

As an academic, Dr Mellet created several certificate courses in Economics and he is furthermore widely regarded as a guest speaker of note on topics regarding economics. He is particularly interested in monetary economics, macroeconomics and policy issues.

In 2006 he was named Economist of the Year during the prestigious Absa/Beeld Economist of the Year competition. It was the first time that an academic was awarded the title and according to the judges, Dr Mellet is the first-ever economist to win the competition with such a great margin.