Fuel may go up next month

The months-long downward trend in fuel prices has reversed sharply in February.

This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data issued by the Central Energy Fund.

“International fuel prices have climbed by over 20 per cent since the last week of January,” the AA said.

“A spike in the Rand/US dollar exchange rate has also put pressure on the fuel price, with current data predicting a March price increase for petrol of around 68 cents a litre, with diesel and illuminating paraffin up by approximately 45 and 48 cents a litre respectively.”

The AA said this was the first under-recovery in several months and that substantial improvements in both the exchange rate and international petroleum prices would be needed if motorists were to avoid a fuel price hike at the beginning of next month.

“It’s too early to tell whether the uptick in fuel prices is mere volatility or a sign that the bottom of the cycle has been reached,” the AA said.

“We would, therefore, advise motorists to be cautious before committing the money they have saved on fuel over the past few months to other expenses.”