SABC News - AA warns of substantial fuel price upsurge:Sunday 31 January 2016

AA warns of substantial fuel price upsurge

Sunday 31 January 2016 15:52

SABC

Petrol will rise by 6 cents a litre on Wednesday.

Petrol will rise by 6 cents a litre on Wednesday. (SABC)

The Automobile Association (AA) has warned that the fuel price will rise substantially if oil turns the corner and starts an upwards spiral.

Petrol will rise by 6 cents a litre on Wednesday.

The AA says only oil's lower price is protecting motorists against the rand rout.

If the rate had held to its January 1 level, petrol would have dropped by up to 43 cents a litre.

The AA says the weak oil price means motorists have yet to be exposed to the full effect of the rand's slump.   

On Friday, South Africa's rand rallied to its strongest level in three weeks on Thursday after the central bank aggressively hiked the benchmark rate to tame worsening inflation.

Stocks rose more than 2% after shares in global mining company Anglo American (Anglo) jumped on positive production numbers while petrochemicals giant Sasol rose after the price of oil hit a three-week high.

South Africa's Reserve Bank raised its benchmark repo rate by half a percentage point or 50 basis points as expected, saying the outlook for inflation had deteriorated significantly even as economic growth slowed. By 1522 GMT, the local currency firmed 1.6 % at 16.2070.

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