JOHANNESBURG, Gauteng — A new fuel price hike is set to take effect this Wednesday, bringing increased costs for petrol and diesel that analysts warn will directly influence short-term inflation. The Department of Mineral and Petroleum Resources announced the latest adjustments, which are expected to ripple through wider living and logistics expenses across the country.
Effective from midnight, both grades of petrol will increase by R1.34 per litre, while both grades of diesel will see a steeper rise of between R2.93 and R3.14 per litre. Additionally, the retail price of illuminating paraffin will increase by R2.84 per litre, and LP gas will go up by 69 cents per kilogram.
The announced increases are driven by a combination of domestic and global factors, including elevated oil prices, an increase in the slate levy, and a necessary fiscal adjustment to accommodate a wage increase for court employees. These compounding elements are expected to deliver immediate financial pressure to motorists and consumers alike.
James Turp, a Portfolio Manager at Ninety One, emphasized that current oil prices, coupled with petrol and refining costs, remain the most significant factors influencing inflation at this time. While the economic pass-through of these costs has not been as severe as initially feared, Turp noted that it remains a developing picture. He highlighted that oil prices had already climbed by 3% on the day of the announcement due to escalating Middle East tensions, keeping the inflation outlook at the forefront of market analysis.
Furthermore, Turp cautioned that these immediate economic pressures must be evaluated alongside the potential for drought conditions driven by El Niño weather patterns later this year, which could introduce additional volatility to the broader economic landscape.
