South African motorists could face another sharp increase in fuel prices next week, with petrol potentially rising by around R3 a litre.
The expected increase is being driven by higher international oil prices and a weaker rand, which have pushed fuel under-recoveries higher.
If the increases are implemented, the price of 95 unleaded petrol could approach the R30-a-litre mark.
Group Chief Economist at PSG Financial Services, Johann Els, says rising oil prices and higher interest rates globally could also weigh on economic activity.
“The higher oil prices, the rising interest rates you are seeing globally, not only in South Africa, that tends to depress economic activity, so down the line we might see impact in terms of inflation coming onto downward pressure.”
The final fuel price adjustment will depend on the latest data and government’s monthly pricing decisions.