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.
The petrol price is set to increase by 39 cents a litre on Wednesday (5 February), the department of energy announced last week.
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.