Fuel price increase not as much as expected
Fuel prices will increase in February but not by as much as expected, after the Rand staged a comeback against the US dollar in late January.
This is according to the Automobile Association (AA), commenting on unaudited month-end fuel price data.
“International oil prices remain near their recent highs but the Rand has strengthened around 10c against the US dollar since January 15,” the AA says.
Read: Brace for another fuel price hike
“This has caused a marked improvement in the fuel price picture since mid-month.”
Petrol is expected to cost 30c a litre more, diesel 22c and illuminating paraffin 16c, but the AA warned motorists not to rely on a softer fuel price position in the medium term.
“International oil prices have been on an upward trend since the start of December last year.”
Read: Fuel price increases imminent
It added that uncertainty still exists about where oil will find its new price equilibrium when the Organisation of the Petroleum Exporting Countries (Opec) production cuts start to filter into the global economy and pointed out that the Rand remains vulnerable to political and economic shocks.
“We advise motorists to create as much space as they can in their household budgets to accommodate possible future fuel price hikes,” the association concludes.
