Petrol price hike expected after Gordhan charge

Bank stocks lost R34 billion yesterday after finance minister Pravin Gordhan was summoned to appear in court on fraud charges.

Following this, Ashburton Investments financial analyst, Wayne McCurrie has warned that the Gordhan saga will lead to a significant rise in the price of petrol.

With the Rand back above R14 against the dollar, and the oil price above $52, McCurrie said this ‘means that petrol will increase significantly next month, if everything remains the same’.

McCurrie warned that if Gordhan is forced out of office, South Africa would likely go into recession amid a collapse in the local currency, a rise in interest rates, and inflation.