Pain at the pumps in February as massive fuel price increase looms

Motorists will have to part with more at the pumps in February in one of the biggest projected increases since the onset of the Coronavirus last year.

Following from fuel price increases at the beginning of January, which saw the price of petrol rise by 43 cents a litre, diesel by 55 cents and illuminating paraffin also by 55 cents, the latest unaudited data report by Automobile Association (AA) predicts another hefty price rise.

It forecasts an increase of 80 cents cents a litre for petrol, 61 cents for diesel and 63 for illuminating paraffin.

“The problem is international oil prices, which have been consistently climbing with each passing day. 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,” the AA said in a statement on Friday.

It however added that the Rand’s worsening performance against the US Dollar during the first half of January had noting to do with the spike as the local currency devalued from R14.60 to R15, which contributes only four cents to overall expected increase.

“With the Rand relatively strong by recent standards, the only hope for a reprieve relies on a pullback by oil. Unfortunately, the trend lines suggest that the situation may deteriorate further before month end,” it concluded.

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