Motorists buckle up for petrol price hike

Motorists will have to dig deeper into their pockets as the petrol price goes up by 20 cents per litre come Wednesday. 

The price of diesel will also increase by between 62 and 65 cents per.

The rise forms part of the usual monthly adjustment implemented by the Department of Mineral and Petroleum Resources. 

The department said the increases are mainly due to higher international shipping costs and geopolitical uncertainty in the middle east as well as higher oil prices.

The conflict in the Middle East has raised concerns about potential disruptions to global oil exports.

US and Israeli strikes on Iran that resulted in Iran’s supreme leader Ayatollah Allie Khamenei triggered a sharp spike in the price of brent crude oil on Monday to nearly $80 per barrel.

Analysts said this could wipe out recent gains from a period of lower headline inflation.

If the conflict deepens further, oil prices could climb to as high as $100 per barrel.

The current volatility in global oil markets, coupled with the weakness of the rand, is likely to push domestic fuel prices even higher.

Economists estimate this could add around 0.4% to consumer price inflation (CPI) in the coming months, placing renewed pressure on households and the broader economy.