Unleaded 95 octane petrol is expected to drop by 8c a litre in February, but 93 octane petrol, diesel and illuminating paraffin are all set for a price rise at month end. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The AA says 93 octane petrol is showing a 1c-a-litre rise, with 13c hikes for both grades of diesel, and 10c for illuminating paraffin.
“International oil prices surged by nearly $2 a gallon in late December 2019 before beginning a recovery which was halted by the recent tensions between the US and Iran” the AA says.
“In the first week of January 2020, the $2 mark was tested again, albeit with a slight recovery since.”
The AA says the rand, which dropped as low as R13.95 to the US dollar at the end of December, had also begun to tick up, passing R14.40/$ at the close on Tuesday, January 14.
“This rise means bad news for fuel users and comes at a time when many consumers are already feeling the financial pinch,” the association noted.
The AA says political tensions in the Middle East, one of the world's richest oil-producing regions, are likely to produce continued uncertainty which would feed into oil price movements.
“The rand's performance will be key in keeping any further oil hikes at bay,” it concludes.
Motorists are paying substantially more for fuel than they did a year ago. Inland pump prices are now R16.16 for a litre of 95 octane unleaded petrol and R14.67 for 50 ppm diesel.
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