Get ready for another fuel-price hike
Petrol set to rise 43c and diesel a whopping 62c a litre next month
SA motorists are likely to be hit with a 43c a litre petrol price hike and pay 62c more for diesel next month, due to a weakened Rand and rising oil prices.
The Automobile Association says that recent reductions in the fuel price have been dealt a blow by a steady increase in international petroleum prices during the first half of February. At the same time, the Rand, while currently offsetting some of oil's gains, has been on a weakening trend against the US dollar since the start of February.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund, the AA said: "Oil traded within a very tight band for most of January, but we have seen a steady uptick since February began. This trend has accelerated in the last week in particular."
"The Rand has slipped from R13.20 against the dollar on 1 February to R14.12 on 14 February. This is not good news for fuel users at a time when oil is also rising," the AA said.
Fuel prices have reduced from a peak of R17.08 in November to the current R14.08 (95 unleaded inland). However, the data suggests a price increase of 43 cents a litre is in the offing for petrol, 62 cents for diesel, and 47 cents for illuminating paraffin.
"If the trendlines for oil and the Rand don't flatten out, there could be worse to come before month end," the AA said.