Steep fuel price hike expected in January, AA warns

accreditation
0:00
play article
Subscribers can listen to this article
International oil prices have stabilised over the past few days.
International oil prices have stabilised over the past few days.

Fuel prices are expected to rise significantly in January, the Automobile Association (AA) warned on Wednesday.

It expected steep increases across the board, with petrol likely to rise by up to 43 cents a litre, and diesel and illuminating paraffin by 55 cents.

The AA made this prediction based on unaudited month-end fuel price data released by the Central Energy Fund.

"The rand has continued to advance against the US dollar, which is a pleasing outcome considering the severe beating the currency took earlier in the year. But even the currency's ongoing strength has not been enough to contain oil's march back towards its pre-Covid-19 price levels," the AA said in a statement.

International oil prices have stabilised over the past few days, but in the view of the the AA, it is too early to tell whether this is a new plateau or an expected pullback as trading activity declined over the Christmas weekend. 

 "The trend up to December 17 was quite markedly upward, and if that picks up more steam in the new year, it won't bode well for fuel prices in 2021," the association said.

"While South African fuel prices are well off their record highs, the country's economy is in a fragile state, and any shocks to international oil prices or the rand/US dollar exchange rate could hurt fuel users badly."

The current price of unleaded 93 petrol at the coast is R13.75 and R14.26 inland. The current price of unleaded 95 petrol is R13.76 at the coast and R14.46 inland.

The current price of 500 PPM diesel (coastal) is R11.85 and R12.45 inland. Diesel (50 PPM) is currently R11.89 at the coast and R12.40 inland.


We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.83
-0.5%
Rand - Pound
20.34
-0.5%
Rand - Euro
17.40
-0.4%
Rand - Aus dollar
10.81
-0.4%
Rand - Yen
0.13
-0.3%
Gold
1,755.78
+0.8%
Silver
22.72
+0.9%
Palladium
2,014.50
+1.4%
Platinum
988.00
-0.5%
Brent Crude
77.25
+1.4%
Top 40
57,643
0.0%
All Share
64,049
0.0%
Resource 10
57,254
0.0%
Industrial 25
82,879
0.0%
Financial 15
14,316
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
What potential restrictions on unvaccinated South Africans may make the biggest difference to public health, the economy?
Please select an option Oops! Something went wrong, please try again later.
Results
Limited access to restaurants and bars
11% - 128 votes
Limited access to shopping centres
15% - 171 votes
Limited access to live events, including sport matches and festivals
26% - 302 votes
Workplace vaccine mandates
48% - 561 votes
Vote