The price of petrol and diesel is expected to “rise significantly” in January, according to the Automobile Association (AA).
The AA made the prediction based on the unaudited month-end fuel price data released by the Central Energy Fund.
“The rand has continued to advance against the US dollar, which is a pleasing outcome considering the severe beating the currency took earlier in the year,” said the AA.
The AA added that the rand’s daily exchange rate dipped near R14.50 to the US dollar during December, with the average exchange rate hovering near R15.00.
“But even the currency’s ongoing strength has not been enough to contain oil’s march back towards its pre-COVID-19 price levels.”
“The trend up to December 17 was quite markedly upward, and if that picks up more steam in the new year, it won’t bode well for fuel prices in 2021.”
The result is the following predicted price changes for January 2021:
- Petrol – 43 cents per litre increase
- Diesel – 55 cents per litre increase
- Illuminating Paraffin – 55 cents per litre increase
“The outcome is steep increases across the board. Petrol is set to rise by up to 43 cents a litre, and diesel and illuminating paraffin by 55 cents,” said the AA.
“While South African fuel prices are well off their record highs, the country’s economy is in a fragile state and any shocks to international oil prices or the rand-dollar exchange rate could hurt fuel users badly.”