Fuel price hike expected in February

South Africans have been warned that there will be a “significant spike” in fuel prices in February.

The Automobile Association (AA) commented on the month-end fuel price data released by the Central Energy Fund, predicting increases of “up to 82 cents a litre” for petrol. Diesel is expected to increase by around 61 cents and illuminating paraffin by 63 cents.

This isn’t confirmed but rather a prediction as a result of a weaker Rand and stronger oil prices.

“Unfortunately, our mid-month concerns over the advancing oil price have been borne out in practice. There has been a slow, but steady, rise in the price of oil, which is likely to cause ongoing pain at the pumps.

“Almost all of the fuel price increases reflected by this month’s data are attributable to the stronger oil price, and the average rand/ dollar exchange rate has remained generally flat for the month, despite some large daily swings,” the AA said according to CarMag.

While the Rand has previously been lower than it currently is now, low oil prices offset this problem in 2020. This led to the petrol price drops over the course of the year.

Those wanting to avoid paying more should make sure they fill up before the first week of February.

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