Looming petrol price hike direct result of rand slump

The price of petrol is expected to increase by as much as 40 cents a litre in May following the recent credit rating downgrades.

Picture: Michelle Lubbe/EWN.

JOHANNESBURG – Motorists have been urged to prepare for a petrol increase of as much as 40 cents a litre next month in the wake of the recent credit rating downgrades.

Ratings agencies Standard & Poor’s Global and Fitch downgraded the country to junk status, citing political instability.

The rand weakened significantly against major currencies following the developments.

Debt rescue's Neil Roets says the cost of diesel could also rise considerably.

“If you look at the brent crude oil price, that has actually stabilised in the last couple of weeks and it is actually going down. The fact that we are experiencing a price increase is a direct result of the rand weakening.”