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By automotive personnel 
1 hour ago
JOHANNESBURG – South African motorists face sharp price increases for both gasoline and diesel in February.
According to the Automobile Association, mid-month data from the Central Energy Fund points to an increase in the price of gasoline of about 80 cents a liter, while diesel and light paraffin will increase 60 cents or more.
Paradoxically, these price rises, which will undoubtedly cause some damage to the local economy, are the result of spikes in global economic activity and sentiment, which have driven up the price of crude oil.
“The problem is international oil prices, which have risen steadily with each passing day,” the AA said.
“A general increase in positive sentiment as Covid-19 vaccines are rolled out has been combined with spikes in global economic activity, driving oil demand and driving prices away.”
Fuel prices will cross the R15 mark again
A gasoline price increase of 80 cents would raise the cost of a 95 liter unleaded to R14.96 on the coast and R15.66 in the interior regions, where the cheaper 93 Unleaded would rise to R15.49.
It is worrying that the next round of increases will also bring prices closer to the levels experienced around this time last year, before Covid drove oil prices down, and when a liter of 95 ULP cost R15.39 on the coast and R16. .16 inside.
Incidentally, the highest fuel prices ever recorded in South Africa were in October and November 2019, when 95 ULPs reached R16.49 on the coast and R17.08 inland. If oil prices continue to rise, without a significant rand recovery, we could be there again very soon.
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