Rand decline behind fuel price pain
"The severity of the Rand's decline is reflected in the exchange rate numbers" the AA said."On the 27th of December, a dollar cost R10.35. By the 27th of January, 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 it was concerned that the knock-on inflationary effects of recent fuel price hikes would send further shocks into South Africa's 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 concluded.
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