Sharp increase in petrol price expected in February
January 18, 2021
A substantial petrol price increase is expected for South African drivers in February. Earlier in January, petrol 95 and 93 increased from R 14.26 and R 14.46 inland, versus R 13.75 and R 13.76 coastal, and by 31 cents and 35 cents respectively.
Unaudited mid-month data from the Central Energy Fund (CEF) indicates that fuel prices are expected to increase once again. Petrol is might rise by around 80 cents per litre and 61 cents per litre for diesel, according to the Automobile Association (AA).
“The problem is international oil prices, which have been consistently climbing with each passing day,” the Association says. “A general increase in positive sentiment as COVID-19 vaccines are rolled out has combined with upticks in global economic activity, pushing up demand for oil – and taking prices with it,” said the AA.
Planned increases:
- Petrol is marked for an increase of 80 cents a litre
- Diesel is flagged for an increase of around 61 cents a litre
- Illuminating paraffin for an increase of 63 cents.
The AA explained that the weak Rand-US Dollar exchange rate has not been a major contributing factor to the increase of fuel prices in January.
“Despite some wild swings in the daily exchange rate, and the average rate creeping up from around R14.60 to just over R15.00, only four cents of the substantial predicted increases come from Rand weakness.”
Image: Women on Wheels Gallery
