Concerns over cumulative effects of high fuel prices

Economists have welcomed National Treasury’s announcement to extend relief to motorists, with a reduced general fuel levy.

Finance Minister, Enoch Godongwana, announced that from next Wednesday, drivers of petrol vehicles would continue to pay R3 less in terms of the general fuel levy, while drivers of diesel vehicles will be exempt from paying the levy, a R3.93 saving.

Diesel prices are expected to rise relatively higher than petrol prices.

But analysts warn that the cumulative effect of a series of monthly fuel price increases, and uncertainty about the Middle East conflict, could negatively affect the economy, and drive inflation higher.

Nompumelelo Siziba filed this report.

For more news, visit sabcnews.com and #SABCNews on all Social Media platforms.