“Bullish international oil prices are setting the stage for yet another hefty hike in fuel prices,” according to the Automobile Association (AA) of South Africa.
This comes after the release of the unaudited mid-month fuel price data by the Central Energy Fund.
Furthermore, the Association stated that international product prices shot up during the first two weeks of February – and this has resulted in an increase in oil prices alongside it.
One silver lining comes from the rand/US dollar exchange rate, however.
The rand strengthened by around 8 cents against the US dollar in February, although it hasn’t been enough to offset the increase in oil prices.
“If oil continues on this trajectory, South Africa’s fuel prices might edge back into record territory in the medium term,” concludes the AA.
The projected increases for the different types of fuel are listed below:
- Petrol – Increase of 56 cents per litre
- Diesel – Increase of 47 cents per litre
- Illuminating Paraffin – Increase of 41 cents per litre