Motorists can expect another sharp fuel price hike in March, says AA

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Bullish international oil prices are setting the stage for yet another hefty hike in fuel prices. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

The association says the current picture shows month-end increases of up to 56c a litre for petrol, 47c for diesel, and 41c for illuminating paraffin.

“Oil prices advanced at a leisurely pace during January, but the increase has quickened since then. International product prices shot up by about eight percent in the first two weeks of February,” the AA says. The association notes that on the plus side, the rand/US dollar exchange rate has worked in SA’s favour, with the rand strengthening about 8c against the US dollar in February, though this has been far from enough to offset the oil price.”

The AA said if oil continues on this trajectory, SA's fuel prices might edge back into record territory in the medium term. Fuel users also remain vulnerable to economic shocks which might weaken the rand.

 

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