The Central Energy Fund has released data that will see
South African motorists digging deeper into their pockets for petrol in
February.
According to the Automobile Association (AA), the petrol
price is set to increase sharply, by 82 cents per litre, while diesel prices
are set to rise by 59 cents and illuminating paraffin by 60 cents.
This sees the price at the pumps rise to R14.98 for 95 Unleaded
petrol for coastal towns, with diesel retailing at R12.99.
According to the AA, the mid-month concerns over the
advancing oil prices have been borne out in practice, adding that there has
been a slow, but steady, rise in the price of oil which is likely to cause
ongoing pain at the pumps.
“Almost all of the fuel price increases reflected by this
month’s data are attributable to the stronger oil price, and the average
rand/US dollar exchange rate has remained generally flat for the month, despite
some large daily swings.”
The association also noted that the rand had dropped to an
all-time low of more than R19 to the dollar in April last year, although it has
since recovered to a level close to its pre-COVID-19 value.
“The record low exchange rate fortunately went
hand-in-hand with record low oil prices, so the impact went largely unnoticed
as fuel prices plunged,” the AA added. “But economic or policy shocks which
weigh on the rand are likely to have a more significant effect on the fuel
price now that international oil prices have rebounded.”
Source: Automobile Association
