SA should prepare for another hefty spike in fuel prices – AA

The Automobile Association (AA) has warned South Africans to prepare for yet another hefty hike in fuel prices.

This is due to “bullish” international oil prices, said the association, commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The AA says that the current picture shows month-end increases of up to 56 cents a litre for petrol, 47 cents for diesel, and 41 cents for illuminating paraffin.

“Oil prices advanced at a leisurely pace during January, but the increase has quickened since then. International product prices shot up by around eight percent in the first two weeks of February.

“The Association notes that on the plus side, the Rand/US dollar exchange rate has worked in South Africa’s favour, with the Rand strengthening around eight cents against the US dollar in February, although this has been far from enough to offset the oil price.

“If oil continues on this trajectory, South Africa’s fuel prices might edge back into record territory in the medium term. Fuel users also remain vulnerable to economic shocks which might weaken the Rand,” it said.

ALSO READ: Petrol price expected to increase significantly in February

This after another spike was reported earlier this month, which saw the price of petrol increasing by up to 82 cents a litre, diesel by 59 cents, and illuminating paraffin by 60 cents.

Compiled by Vhahangwele Nemakonde.

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