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Petrol price increases for February

The Automobile Association (AA) has blamed the slow oil price and Rand/Dollar vulnerability for the sharp increase in the price of petrol, diesel and paraffin.
Petrol price increases for February
©Koonsiri Boonnak – 123RF.com

Set to come into effect in the first week of February 2021, petrol is expected to rise by up to 82c a litre, diesel by 59c and illuminating paraffin by 60c.

"Unfortunately, our mid-month concerns over the advancing oil price have been borne out in practice. There has been a slow but steady rise in the price of oil which is likely to cause ongoing pain at the pumps. Almost all of the fuel price increases reflected by this month's data are attributable to the stronger oil price, and the average Rand/US dollar exchange rate has remained generally flat for the month, despite some large daily swings."

Despite the Rand dropping to an all-time low of over R19 to the dollar last April and the currency has since appreciating to approximately its pre-Covid -19 level, the changes in the oil price have offset this

"The record low exchange rate, fortunately, went hand-in-hand with record low oil prices, so the impact went largely unnoticed as fuel prices plunged. But economic or policy shocks which weigh on the Rand are likely to have a more significant effect on the fuel price now that international oil prices have rebounded," the Association concludes.

This article was originally published on Cars.co.za.


SOURCE

Cars.co.za
Cars.co.za is a leading online automotive retail portal that lists more than 70 000 vehicles stocked by hundreds of dealers countrywide, as well as the top-ranked branded SA YouTube channel. In 2015, Cars.co.za repositioned itself as a consumer champion by optimising its editorial content for the purposes of engaging and empowering its users. The Cars.co.za Ownership Satisfaction Survey, in association with Lightstone Consumer, and the Cars.co.za Consumer Awards – powered by WesBank, underlines the company’s objective to be the most comprehensive resource to South African vehicle buyers.
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