Employers can expect workers to “demand higher wages to enable them to cover their expenses and take care of their families” as a result of Wednesday’s 7‚5% petrol price hike‚ the United Association of South Africa (Uasa) said.

The union said the 88c/litre increase in Gauteng “will have a negative effect on inflation to the detriment of South Africa’s workers”.

Uasa referenced economist Mike Schussler as saying “the price hike together with the 30c rise in the fuel levy‚ the rising cost of food‚ will add 0.44% to inflation directly and will keep April inflation close to 7%-8% instead of the hoped for decrease”.

“Add to this the results of the drought and the expected food inflation of between 15% and 20% over the next two years‚ as well as the recently increased interest rate and workers will have to fasten their belts as never before‚” the union said.

“The combined price hikes will have a serious impact on economic growth prospects which could lead to further downgrading by credit rating agencies.

“In addition‚ it will cause our currency to weaken further with enhanced rising inflation as a result.”