Motorists beware: More fuel price increases on the cards

MOTORISTS will have to endure more fuel price increases next month, with petrol set to rise by 80 cents per litre.

Diesel is expected to increase by around 61 cents a litre, while illuminating paraffin by 63 cents per litre.

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

The predicted increases for February would follow this month’s hikes which saw both grades of petrol 95 and 93 go up by 40 cents and 43 cents per litre respectively.

 ‘The problem is international oil prices, which have been consistently climbing with each passing day,’ said AA spokesperson, Layton Beard.

‘A general increase in positive sentiment as Covid-19 vaccines are rolled out has combined with upticks in global economic activity, pushing up demand for oil – and taking prices with it.’

He said only four cents of the substantial predicted increases, however, come from South Africa’s currency weakness.

‘An increase of this magnitude would make life harder still for transport companies and the many people whose livelihoods have been crushed by the economic carnage of Covid-19.

‘With the rand relatively strong by recent standards, the only hope for a reprieve relies on a pullback by oil. Unfortunately, the trend lines suggest that the situation may deteriorate further before month-end,’ said Beard.