Eish, take a deep breath before you read this: Petrol is set for a whopping increase of 80 cents a litre, diesel is flagged for an uptick of around 61 cents a litre, and illuminating paraffin is on course to rise by 63 cents.
It’s the steepest increase in fuel prices since May 2020 and continues an upward trend set in January. Fuel costs spiked by upwards of 40 – 50 cents for both petrol and diesel consumers, and the misery at the pumps will intensify next month.
South Africa is heavily reliant on oil imports. When the global market is in a period of growth or recovery, it sends the petrol price skywards. The AA issued a statement earlier today, fearing that more massive increases are on the horizon.
“The problem is international oil prices, which have been consistently climbing with each passing day. 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.”
“Despite some wild swings in the daily exchange rate, and the average rate creeping up from around R14.60 to just over R15.00, only four cents of the substantial predicted increases come from Rand weakness. The only hope for a reprieve relies on a pullback by oil. Unfortunately, the trends suggest that the situation may deteriorate further before month-end.”
Taking these forecasts and first estimates into account, here’s what you can expect to pay for fuel (price per litre) from the first week of February 2021 onwards. However, we have to stress that these mid-month estimates are liable to change by the time the Department of Energy set next month’s costs in stone.