SA fuel price set to rise next month: analyst

January 16, 2008, 09:00

Independent economist Christie Viljoen has predicted that fuel prices are set to rise next month. She attributes this to the recent rise in the crude oil price a record $100 a barrel.

However, the stronger rand and the slight retreat in oil prices have meant that hikes will not be as steep as expected. The under-recovery on petrol is 20.5 cents a litre, around 10 cents a litre on diesel, while paraffin has remained almost unchanged.

Analysts say that at this rate there is a strong chance that motorists could soon fork out R8 a litre for petrol. The higher fuel prices are set to drive consumer inflation further up, raising the spectre of further lending rate hikes.

Sabcnews.com