Fuel Price Will Increase Significantly in January, Predicts AA – The Citizen

Fuel prices will rise significantly in January.

This is according to the Automobile Association (AA), which was commenting on the unaudited month-end fuel price data released by the Central Energy Fund.

“The Rand has continued to advance against the US dollar, which is a pleasant result considering the severe beating the currency received earlier in the year. But even the current strength of the currency has not been enough to contain the march of oil towards pre-COVID-19 price levels, ”says the AA.

“The result is huge increases across the board. Gasoline is expected to rise to 43 cents per liter and diesel and light paraffin by 55 cents ”, says the Association.

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The AA notes that the daily rate of the Rand fell close to R14.50 per US dollar during December, with the average exchange rate hovering around R15. However, he also said he was concerned about the almost 13% increase in international prices for petroleum products during the same period.

International oil prices have stabilized in recent days, but the AA says it is too early to say whether this is a new plateau or an expected setback as business activity slowed over the Christmas weekend.

“The trend through December 17 was markedly upward, and if that picks up more momentum in the new year, it will not bode well for fuel prices in 2021,” says the Association.

“While South African fuel prices are well below their all-time highs, the country’s economy is in a fragile state and any impact on international oil prices or the Rand / US dollar exchange rate could hurt seriously to fuel users, “he concludes.

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