Johannesburg - If the rand's depreciation continued unchecked, a petrol price of R16 per litre was possible in the medium-term, the Automobile Association said on Monday.
“On December 27, a dollar cost R10.35. By January 27 it cost R11.20. Meanwhile, international petroleum prices have ticked up slightly since our last review of fuel price trends in mid-January, so it's a double whammy for motorists,” the AA said in a statement.
Last week, SA Reserve Bank governor Gill Marcus said the weak rand exchange rate affected the petrol price, which in December and January increased by an accumulative 55 cents per litre.
A further increase in the petrol price of 30 cents per litre was expected in February due to the weak exchange rate.
The AA expressed concern that the knock-on inflationary effect of the recent fuel price hikes would send further shocks into the economy.
Last year's credit data showed that almost half of credit-active consumers had an “impaired” credit record.
“We believe it will be very difficult for such people to absorb the effects of ongoing fuel price increases,” the AA said. - Sapa