File
The developing military situation in Ukraine will likely hurt South Africans at the pumps as the price of oil rose sharply on the back of Russia's "military operation" in Ukraine.
The Rand also opened weaker on Thursday at R15.29 to the Dollar as investors dumped riskier assets following the announcement by Russian President Vladimir Putin of the military operation in response to requests for help from rebel leaders in eastern Ukraine.
The price of Brent Crude Oil also rose sharply and at midday was 9% higher at $102.78 a barrel.
The Automobile Association of South Africa said the developments in Ukraine were not good news for South Africa.
"We need to realise as South Africans that we are not an island and that even though major events may happen thousands of kilometres away, they will, in some way, impact on us locally," said AA spokesperson Layton Beard.
He said the fact that the price of oil has increased means that the product South Africa buys is going to be a lot more expensive than it was a couple of days ago.
"We've noted already that we expect the fuel price to go up quite significantly in March. These developments will add to that worry. I think we are already looking at around R1.20 per litre increase to the fuel price, pushing fuel prices in the country to record highs again," said Beard.
"The message from the AA is brace yourself, this is really negative."
The Minister of International Relations and Cooperation, Dr Naledi Pandor, called on the United Nations to play a central role in the search for peace in the Ukraine conflict.
"The UNSC is the body given the mandate for the maintenance of international peace and security and it must exercise its role fully. As South Africa, we believe all the issues of concern to any of the parties must be addressed in inclusive talks led by the UNSC," said Pandor.
