“Fuel prices are set for hefty rises at month-end if current trends continue,” according to the Automobile Association (AA) of South Africa.
All fuel types are expected to receive a price increase, with diesel and paraffin being the most affected – at 52 cents per litre each.
“But petrol hasn’t escaped unscathed, with increases of up to 34 cents a litre on the cards,” said the AA.
Individual price increases for different fuel types are listed below:
- Petrol – 34 cents per litre increase
- Diesel – 52 cents per litre increase
- Illuminating Paraffin – 52 cents per litre increase
The price increase predictions are based on unaudited mid-month fuel price data released by the Central Energy Fund.
The AA states that these increases are coming despite a good performance from the rand, and “significant global refining overcapacity, and a slight increase in the world-wide oil supply alongside falling demand”.
“Although the International Energy Agency does not expect a significant impact before the second half of 2021, we would not be surprised if optimism over the vaccine has been behind recent oil strength. Further strength might be on the cards if the vaccination plan shows large-scale effectiveness,” the AA concludes.