Petrol price expected to increase in January

Sorry motorists, it looks like 2021 will kick off on a slightly more expensive note. The petrol price is predicted to increase come January.

Mid-month data from the Central Energy Fund (CEF) point towards substantial increases for both petrol and diesel in the first month of 2021.

According to the CEF, petrol 95 and 93 will see an increase of 31 cents and 35 cents respectively. Diesel 0.05% and 0.005% will likely see a shift upwards of 52 cents and 51 cents respectively. Illuminating paraffin is predicted to increase by 52 cents.

Currently, Petrol Unleaded 93 and 95 costs R 14.26 and R 14.46 inland, versus R 13.75 and R 13.76 coastal.

International oil prices are the main cause of the increase in price.

“It’s been a good month for the rand so far, with the local currency picking up around 15 cents against the US dollar, but the basic fuel price has shot up since the start of December, raising the spectre of quite substantial fuel price rises if there isn’t a pullback before month end,” said the Automobile Association.

“Although the IEA does not expect a significant impact before the second half of 2021, we would not be surprised if optimism over the vaccine has been behind recent oil strength. Further strength might be on the cards if the vaccination plan shows large-scale effectiveness,” the AA added.

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