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Petrol expected to drop in February but diesel is set to increase

JOBURG – The Rand's performance and the political tensions in the Middle East have continued uncertainty in the oil price.

The Automobile Association of South Africa (AA) said they expected unleaded 95 octane petrol to drop in the month of February, however, 93 octane, diesel and paraffin were set to increase at the end of January. 

The AA revealed 95 octane was expected to drop by eight cents a litre, 93 octane would increase by one cent a litre, a rise of 13 cents for both grades of diesel and 10 cents for illuminating paraffin.

The AA said, “International oil prices surged by nearly two dollars a gallon in late December 2019 before beginning a recovery which was halted by the recent tensions between the USA and Iran.”

The rand’s performance was performing well at the end of December at R13.95, however, begun to increase to R14.40 on 14 January, which was not good for fuel users, the AA noted. “[It] comes at a time when many consumers are already feeling the financial pinch.”

The AA concluded that the political tensions in the Middle East will continue the uncertainty of oil prices going forward.

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