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Fuel price hike to kick in at midnight, warnings of more hikes to come

The cost of diesel will be even more dear. At midnight, the price of diesel will increase by up to 93 cents per litre.

Petrol station. Picture: EWN

JOHANNESBURG - Another fuel price hike is speeding our way. From Wednesday, motorists will be paying 74 cents more for a litre of petrol.

The cost of diesel will be even more dear. At midnight, the price of diesel will increase by up to 93 cents per litre.

With major fuel price hikes set to come into effect from midnight, motorists have been warned of more increases next month.

This is thanks to tax hikes that come into effect. Finance Minister Tito Mboweni announced last month that fuel levies would increase by 29 cents a litre in the case of petrol and 30 cents a litre for diesel.

The hikes will, however, be implemented in stages, with the first 20 cents coming into effect from the beginning of next month.

The remaining 9 cents a litre for petrol and 10 cents for diesel will only come into effect in June as a carbon tax.

The Energy Department says oil prices and the rand were collectively responsible for the latest increases.

There are now concerns that the price of Brent crude will continue to climb with major oil producing country's cutting production.

Economist Azar Jammine says the knock-on effect will be noticeable.

“They might have felt the pinch and were better off a few months ago. However, this will put the inflation rate to 4.5% from 4% previously and this is not great news.”

(Edited by Shimoney Regter)

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