Concerns latest fuel price hike will have dire consequences for consumers

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.

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

Petrol is going up by 81 cents a litre, while diesel goes up by 72.5 cents and 74.5 cents for the different grades.

Illuminating paraffin goes up by 42.2 cents.

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

READ: A litre of petrol will now cost you just over R20 from Wednesday

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

"This is not only going to affect road users and motorists, people with vehicles, it's going to affect every single consumer," Beard said.

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.

"We believe this strengthens the case of the AA for a total review of the fuel price and the recalculation of the mechanism used to determine the fuel price going forward," Beard said.