Brace for another big fuel price rise

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IOL mot jan16 fuel price Independent Newspapers File photo: Leon Nicholas

Johannesburg - Another big fuel price increase is on the cards for South Africa in February, the AA has warned.

Having analysed data from the Central Energy Fund, the AA is predicting a rise in the petrol price of between 28 and 32 cents, with diesel increasing by 15 cents. Of course, the final figure will depend on how the rand behaves between now and the end of this month.

The AA issues a summary of fuel price trends twice a month and in the latest report, AA public affairs head Graeme Scala explains a grim scenario:

“After remaining fairly flat throughout December, the exchange rate has deteriorated from a South African perspective.

“The Rand is now testing the R11 to the US dollar mark and although international petroleum prices have declined over the same period, the drop has not been enough to offset the increased exchange rate,” Scala added.

However, if the current spike in the exchange rate flattens out, then we could be looking at increases lower than the ones mentioned above, “but for now it is not looking good,” Scala concluded.

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