
As if food inflation isn’t enough, motorists are preparing for a massive hike in the price of petrol this Wednesday.
The AA reported last week that the strengthening of international petroleum product rises has outstripped the Rand’s gains and that the fuel price was subject to considerable risk.
“If oil prices continue to climb-š South African motorists can expect substantial fuel price increases-š” it said.
From Wednesday, South Africans will have to spend an additional 88 cents for a litre of petrol, meaning that the price of petrol will have increased by as much as 7.5%.
“Any associated deterioration in the exchange rate will add more pressure. A combination of sustained oil strength-š and a ratings downgrade before year end-š would be very negative for motorists.”
Read more: Petrol prices explained