The first half of February brought with it a steady increase in international petroleum prices, heavily setting back the recent reduction in fuel prices according to mid-month fuel price data released by the Central Energy Fund.
In January, oil was trading within a tight regulated price range, but this has steadily been increasing since the beginning of February. This trend has accelerated in the last week.
Amid these trends, the Rand has been able to offset some of oil’s price gains, but has started to weaken against the US dollar since the start of February, slipping from R13.20 to the dollar on February 1 to R14.12 to the dollar on February 14.
Current data suggests petrol will experience a price increase of 43 cents a litre, diesel 62 cents a litre and illuminating paraffin will go up by 47 cents a litre next month.
If these fuel price increases continue as they are now there may be more bad news ahead before the month’s end.
Motorist are advised to save a little extra fuel in case petrol reaches exorbitant prices in March.