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• Fuel prices are scheduled for an increase at the beginning of the new year.
• Global economy in slight recovery after Covid-19.
• Diesel will increase by 52c a liter.
• For more motorsports stories, visit www.Wheels24.co.za
The price of fuel may have dropped in early December 2020, but will rise again early in the new year.
Fuel prices are scheduled for sharp increases at the end of the month if current trends continue. This is the word of the Automobile Association (AA) which was commenting on the unaudited mid-month fuel price data released by the Central Energy Fund.
The AA says: “It has been a good month for the rand so far, with the local currency rallying around 15 cents against the US dollar, but the price of basic fuel has skyrocketed since the beginning of December, raising the spectrum of the price of fuel rises if there is no pullback before the end of the month. Diesel and light wax are the hardest hit, and current data shows an increase of 52 cents per liter for these types of fuel. But gasoline does not it has escaped unscathed, with increases of up to 34 cents per liter on the cards. “
Economic recovery
The AA says the increases come despite significant global refining overcapacity and a slight increase in global oil supply coupled with falling demand. The Association also takes note of comments from the International Energy Agency regarding optimism that an effective vaccine for Covid-19 can accelerate economic recovery from the pandemic.
The AA concludes: “Although the IEA does not expect a significant impact before the second half of 2021, we would not be surprised if optimism about the vaccine has been behind the recent strength of the oil. There could be more strength on the cards if the plan of vaccination shows efficacy on a large scale “.
Fuel station
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