The price of fuel is expected to rise in February, while diesel is expected to decrease. This prediction was made by the Automobile Association (AA), while commenting on an unaudited month-end fuel price data released by the Central Energy Fund (CEF).
“International oil prices have reached a slightly higher plateau after climbing in the first half of January,” the AA said. “Over the same period, the rand has firmed gradually against the US dollar. It began the month at nearly R14.50 to the dollar and is currently hovering around R14.00, offsetting the oil price rise to some degree.”
While local oil prices are reportedly experiencing their best January in more than a decade, the price of international crude oil has steadily climbed.
The rise in oil prices comes down to international pressures on this commodity, including an economic slowdown in China and political tensions between the US and Venezuela.
Petrol is predicted to increase by approximately eight cents per litre, while diesel will drop by three cents. Illuminating paraffin will decrease by nine cents.
“What is worth noting is that the average rand strength against the US dollar has been increasing for nearly a month, and we are hopeful this may point to a period of greater stability for the currency,” the AA said. “If international oil prices continue their current stable trend, South African fuel users may see fewer of the wild swings in fuel prices which characterised 2018.”