The Automobile Association (AA) predicts sharp rises in fuel prices for the month of February.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA says that unless the picture drastically improves by month-end, South Africa’s fragile economy is set for a major hit.
“At this mid-month point, petrol is set for a whopping increase of 80 cents a litre, diesel is flagged for an increase of around 61 cents a litre and illuminating paraffin for an increase of 63 cents. The problem is international oil prices, which have been consistently climbing with each passing day. A general increase in positive sentiment as COVID-19 vaccines are rolled out has combined with upticks in global economic activity, pushing up demand for oil – and taking prices with it. The impact of the rand/US dollar exchange rate is quite minimal. The AA will continue to monitor this picture in the next two weeks and have a clearer picture of what exactly fuel prices are going to look like at the end of January,” says AA spokesperson Layton Beard.
[FUEL PRICE OUTLOOK] Sharp rises in fuel prices are on the horizon: https://t.co/o1z46p2c51 #FuelPrice #SAFuel pic.twitter.com/FLAMCHZMbA
— AA South Africa (@AASouthAfrica) January 15, 2021
AA predicts hefty price increase for fuel in 2021
In mid-December 2020, the AA said the new year might bring bad news for motorists with hefty increases in fuel prices. Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA said although the rand is faring well against the US dollar, the basic fuel price has shot up since the start of December, raising the spectre of quite substantial fuel price increases.
Diesel and illuminating paraffin are expected to be the worst hit, with the current data showing an increase of 52 cents a litre. Petrol also hasn’t escaped unscathed, with increases of up to 34 cents a litre expected.
Report on January fuel price increase: