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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 dollar, which is a pleasant result considering the severe beating the currency took at the beginning of the year. But even the current strength of the currency has not been enough to contain the march of oil towards its pre-Covid-19 price levels, ”the AA said.
“The result is big increases across the board.”
Gasoline is forecast to rise to 43 cents a liter, and diesel and light paraffin by 55 cents, he predicted.
The AA noted that the daily exchange rate of the rand fell close to R14.50 per dollar during December, with the average exchange rate hovering around R15.
He said he was also concerned about the nearly 13% rise in international prices for petroleum products during the same period.
International oil prices have leveled off in recent days, but AA said 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 Dec. 17 was markedly up, and if that picks up more momentum in the new year, it will not bode well for fuel prices in 2021,” the association said.
“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 / dollar exchange rate could seriously affect fuel users. “
TimesLIVE
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