AA warns fuel price could increase

By Drum Digital
17 February 2015

The Automobile Association warned on Tuesday that the recent drop in the fuel price could be short lived.

"International fuel prices have climbed by over 20 percent since the last week of January," the AA said in a statement.

"A spike in the Rand/US Dollar exchange rate has also put pressure on the fuel price, with current data predicting a March price increase for petrol of around 68 cents a litre, with diesel and illuminating paraffin up by approximately 45 and 48 cents a litre respectively."

In the first week of February, the price of all grades of petrol dropped by 93 cents a litre.

In early January the price of 93 and 95 octane petrol decreased by R1.27 and R1.23 a litre.

Unless there were substantial improvements in both the exchange rate and international petroleum prices, motorists could be faced with a fuel price hike at the end of the month.

"It's too early to tell whether the uptick in fuel prices is mere volatility or a sign that the bottom of the cycle has been reached," the AA said.

-SAPA

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