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Fuel price hike clipped as rand rallies

2017-01-27 12:43

INCREASE AT THE PUMPS: The Automobile Association of South Africa says the price of petrol is likely to increase by 30 cents in February. Image: iStock

Cape Town - 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) which was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).

Diesel to cost 22 cents more

The AA said: "International oil prices remain near their recent highs, but the Rand has strengthened around ten cents against the US dollar since January 15. This has caused a marked improvement in the fuel price picture since mid-month."

Petrol is expected to cost 30 cents a litre more, diesel 22 cents, and illuminating paraffin 16 cents, but the AA warned motorists not to rely on a softer fuel price position in the medium term. 

'A rollercoaster year for motorists' - an SA fuel price retrospective

The AA said: "International oil prices have been on an upward trend since the start of December 2016." 

It added that uncertainty still exists about where oil will find its new price equilibrium when the OPEC production cuts start to filter into the global economy, and pointed out that the Rand remains vulnerable to political and economic shocks. 

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