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By automotive personnel 
21h ago
JOHANNESBURG – 2021 appears to be off to a bleak start when it comes to travel costs, with mid-month data from the Central Energy Fund currently pointing to relatively substantial increases for both gasoline and diesel since early January.
According to the Automobile Association, diesel prices will be hit the hardest, with current data pointing to an increase of 52 cents a liter, while gasoline will rise at least 34 cents a liter. We say at least because the latest daily data show a deficit of more than 50 cents for gasoline, although the monthly average currently stands at 34 cents.
A liter of unleaded 95 currently sells for R13.76 on the coast and R14.46 inland, where the cheaper 93 ULP sells for R14.26.
The big culprit this month is international oil prices, while the rand has worked slightly in our favor, as AA explains:
“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, creating the specter of fairly substantial increases in the price. fuel price if there is no pullback before the end of the month, “AA said.
The association added that the increases come despite significant global refining overcapacity and a slight increase in global oil supply coupled with falling demand. Additionally, optimism regarding an effective Covid-19 vaccine could also drive up prices.
“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 oil. There could be more strength in the letters if the vaccination plan shows a efficacy on a large scale, “added the AA.
At the time of writing, the rand was trading at R15.03, which is one of its strongest levels since the Covid-19 pandemic, but oil prices remained stubbornly high, with Brent crude trading at R50. .31, which is more than double what it was trading after the accident earlier this year.
As a result of all the turmoil it has been a bumpy year for fuel prices in South Africa, however it is still significantly cheaper to fill it than in January this year, when a liter of unleaded 95 petrol cost R15.52 in the coast.
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