“South African fuel users are set to be hit with yet more steep price hikes going into March,” stated the Automobile Association (AA) of South Africa.
This comes after the release of the unaudited month-end fuel price data by the Central Energy Fund.
The AA states that despite the strong performance of the rand against the US dollar, it was far below what was needed to offset the climb in oil.
The expected increases for all fuel types are outlined below:
- Petrol – 66 cents increase per litre
- Diesel – 57 cents increase per litre
- Illuminating Paraffin – 49 cents increase per litre
“The international oil price seems unstoppable. We are in an eight-week streak of price climbs with no sign yet of a ceiling,” notes the AA.
Additionally, increased economic activity made possible by the rollout of the Covid-19 vaccine leads to firming demand and higher prices, it said.
“Until oil supply and demand settle into stability, more hikes are likely.”
“And, we cannot forget that April will already start with a significant addition of 26 cents a litre to fuel prices because of increases to the General Fuel and Road Accident Fund levies – inflicting further blows to already battered South African consumers,” the AA concluded.