SA economist predicts further fuel price hike

Motorists could face another fuel increase next month

Economist George Glynos has warned price-weary motorists to expect yet another big fuel price hike.

Glynos says the petrol price could jump by around 30c/l next month. Such an increase would take petrol close to the R10/l mark. Glynos says the high oil price will continue to put pressure on fuel prices.

This comes as Brent crude oil is hovering above the $120 a barrel level and a warning by a US investment bank that oil could top $200 within months. The warning comes as higher crude oil prices already pushed fuel prices in South Africa to new records. Diesel is trading above the R10 level for the first time, while petrol is just short of the key level.

Glynos says climbing fuel costs will, in turn, add impetus to inflation and this could force the Reserve Bank to hike rates again.