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Automotive component manufacturing, motor retail and fuel sector would be directly affected.

Price capping will create unfair competition in the fuel retail industry, resulting in thousands of job losses, the Fuel Retailers Association (FRA) said at the weekend.

This follows the price of petrol breaching R25 per litre for the first time ever yesterday.

When motorists swipe their Mastercard or Visa card, the fuel retailer pays back to these institutions a merchant service fee, which includes the interchange rate of 1.75 percent for every credit card transaction.

Already recovering from the economic fall-out from Covid-19, the devastating floods in KZN and the war in Ukraine - which derailed oil prices - has caused further strain on the South African economy, and fuel and forecourt retailers.