Energy

This is how much you can expect to pay for petrol next month

Staff Writer

 ·27 Jan 2017

While the price of fuel is set to rise in February, it it unlikely to be as much as earlier anticipated, after the rand staged a comeback against the US dollar in late-January.

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

“International oil prices remain near their recent highs, but the rand has strengthened around 10 cents against the US dollar since January 15,” the AA said.

“This has caused a marked improvement in the fuel price picture since mid-month.”

Petrol is expected to cost 30 cents a litre more, diesel 22 cents, and illuminating paraffin 16 cents, but the AA warned motorists not to rely on a softer fuel price position in the medium term.

“International oil prices have been on an upward trend since the start of December 2016,” the AA said.

It added that uncertainty still exists about where oil will find its new price equilibrium when the OPEC production cuts start to filter into the global economy, and pointed out that the rand remains vulnerable to political and economic shocks.

“We advise motorists to create as much space as they can in their household budgets to accommodate possible future fuel price hikes,” the AA said.

The Department of Energy is expected to announce the official fuel price changes later on Friday.

This is how the price could reflect at the pumps (wholesale for Diesel):

Read: Petrol price, rate hike double blow coming for SA consumers