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Concerns Latest Fuel Price Hike Will Have Consequences For Consumers

With the price of petrol now breaking through R20 a litre from midnight, there are concerns that this will have dire consequences for consumers.

Two major consecutive increases have seen petrol prices go up by more than R2 a litre.

The AA’s Layton Beard said that the knock-on effects, including inflation, would be dire.

The Mineral Resources and Energy Department said that the weakening of the rand over the past month, along with high oil prices, were the main drivers of the increases.

However, South African Reserve Bank Governor Lesetja Kganyago warned last week that the bank would move to counter inflationary pressures, with the repo rate already being increased by 25 basis points.

The Automobile Association also called on government to change the mechanism used to calculate fuel prices.

Beard said that there needed to be change.