S.Africa petrol, diesel prices to leap in June
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S.Africa petrol, diesel prices to leap in June UPDATED 30 May 2008 | 11:29  
S.Africa petrol, diesel prices to leap in June

JOHANNESBURG (Reuters) - South African petrol pump prices and wholesale diesel prices will rise sharply next week, adding to big increases so far this year and increasing inflationary pressures.

The department of minerals and energy said on Friday all grades of petrol would on June 4 rise by 50 cents, or 5.3 percent, to 9.96 rand a litre in the inland Gauteng region, the country's industrial and economic hub.

The wholesale cost of 0.05 percent sulphur content diesel would jump by 71 cents a litre to 10.80 rand.

The latest rise brings the increase in petrol prices so far this year to 33 percent, while the price of diesel, used extensively in farming and heavy industry, has leapt 49 percent.

Fuel prices are adjusted monthly on changes in the rand currency and international oil prices, which soared to a record high in May. The June adjustment also included a 5 cents a litre increment in the regulated margin for retailers.

Rising fuel and food prices have been the main drivers of higher CPIX consumer inflation, which soared to a near 5-1/2 years high of 10.4 percent year-on-year in April, racing away from the central bank's 3 to 6 percent target.

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