Motorists face another petrol hike in May

R10/litre petrol price possible

Economists warn that South African motorists still face a tough ride ahead with a further fuel increase looming in May. This as oil prices soared to near record levels and the rand remained on the back foot. The under recovery on petrol is at this stage 26c/l and on diesel between 44c/l and 47c/l. Paraffin's under recovery is 51c/l.

Fuel prices rose sharply in the past two months and economists say, at this rate, motorists could soon be paying more than R10/l for fuel. Brent crude oil rose to $107 44 this morning.

Meanwhile, the Reserve Bank's Monetary Policy Committee (MPC) faces a stern test today when it will announce its interest rate decision. Analysts say due to the difficulty of the decision, the MPC could likely be split over the issue. Economists have expressed concern that a further rate hike will threaten the economy.