- The Reserve Bank kept interest rates unchanged, but warned that rising fuel costs from overseas conflict could push up prices soon.
- Petrol and diesel price increases will raise transport, food and electricity costs, putting more pressure on households already struggling to afford basics.
South Africans are about to pay more for petrol, food and transport.
Next week, petrol will go up by more than R5 a litre. Diesel will rise by R10 a litre. This will increase the cost of daily life.
The South African Reserve Bank has kept the repo rate at 6.75%. The prime lending rate stays at 10.25%. All six committee members agreed on this decision.
But the bank warned that interest rates may still go up soon.
This comes after fighting in the Middle East. At the end of February 2026, the United States and Israel attacked Iran. Iran responded by targeting energy supply in the region.
This pushed oil prices higher and weakened the rand.
Higher oil prices make fuel more expensive. This affects transport, food prices and electricity costs. Economists say inflation may reach 4.5% in the short term.
Reserve Bank governor Lesetja Kganyago said this is a “supply shock”, where prices rise while demand weakens.
He said the bank must stop high prices from lasting too long.
“The coming months will be crucial for assessing the longer term inflation consequences,” Kganyago said.
The bank looked at two possible outcomes. If the conflict ends soon, one interest rate increase is likely. If it continues for more than a year, several increases may follow.
In both cases, inflation will rise above 4%.
The bank wants to bring inflation down to 3% and says it is ready to act.
Pictured above: Reserve Bank governor Lesetja Kganyago warns that rising global fuel costs may push up prices in South Africa.
