The Department of Energy said yesterday that motorists would have to pay 74cents a litre more for petrol and 91c a litre more for diesel from tomorrow, due to rising oil prices which offset a stronger local currency last month.
SA Institute of Race Relations chief economist Ian Cruickshanks said the fuel price hike would ripple through all sectors immediately, reinforcing renewed rising consumer price index trend. Domestic petrol prices decreased by a cumulative R3.07 per litre for 95 unleaded in December and January.
The South African Reserve Bank in January flagged volatile international oil prices as one of the risks to the inflation outlook.
Analysts from Momentum Investments said upward revisions to inflation in the near term could be attributed to the Eskom electricity tariff risk and volatility in the oil price.