Fuel price increase in store for January
Rising international petroleum prices are likely to hit South Africans hard at the pumps at the start of next year.
MOTORISTS can expect a fuel price increase at the beginning of the new year.
According to the Automobile Association (AA), rising international petroleum prices are to blame for the possible fuel hike. It said Saudi Arabia had indicated that its crude oil production cuts may go beyond those proposed in November and there were also signals that non-OPEC members may voluntarily decrease production, which had the potential to further bolster international petroleum prices.
According to the AA, the first two weeks of December showed a strong appreciation in oil prices, while the rand remained volatile against the US dollar. Based on the current data, the estimated increase in fuel prices at the end of December will be around 27 cents a litre for petrol, 21 cents for diesel and 28 cents for illuminating paraffin.
The AA said mitigation will be the key strategy against prolonged fuel price rises, and advised motorists to review their energy use and commuting patterns, and consider alternatives to single-occupant vehicle use, such as car-pooling.
It said that a rising fuel price was also an incentive for corporate delivery fleets to re-assess vehicle selection and routing schedules to maximise fuel-efficiency.
