The price of fuel is expected to rise sharply on Wednesday, January 6.
Petrol will officially increase by 40 cents and 43 cents per litre, while the price of diesel will increase by 54 cents.
The price of illuminating paraffin will also increase by 50 cents per litre.
The AA says that the increases come despite significant global refining overcapacity, and a slight increase in the world-wide oil supply alongside falling demand. The Association also notes the International Energy Agency’s comments regarding optimism that an effective vaccine for COVID-19 may accelerate the economic recovery from the pandemic.
“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 Association concludes.