If you go down to the petrol pumps today, you’re in for a pleasant surprise! And there could well be MORE good news next month! Photo: Gallo Images / OJ Koloti
If you go down to the petrol pumps today, you’re in for a pleasant surprise! And there could well be MORE good news next month! Photo: Gallo Images / OJ Koloti
When we were alerted to this latest forecast for the February petrol price, a four-letter F-word came straight to mind. And, for the sake of decency, let’s just say it was ‘fuel’.
Petrol price ‘likely to increase’ in February
There are now clear indications that the petrol price will spike next month – despite a significant drop recorded in January. South Africa looked to have turned the tide on spiralling fuel costs, with the Rand rallying against the US Dollar.
However, a surge in the Brent Crude Oil value – already up by 5% this month – means that South Africans are now likely to pay more at the pumps in two weeks’ time.
‘Hefty petrol price increase’ now on the cards
Record petrol prices have made life a nightmare for the motorists of Mzansi. And, according to the Bureau of Economic Research (BER), we can expect another ‘hefty increase’ when February comes around.
“A combination of oil demand holding up, despite the Omicron-driven surge in COVID infections (especially in the US), and supply disruptions BOOSTED the oil price. After some reprieve on the domestic fuel price front in January, the renewed rise in the oil price is likely to result in another hefty fuel price increase in February.”
BER statement
How bad will it be?
Although we don’t yet have the exact figures, it’s believed the forecast petrol price increase could match – or possibly surpass – the decrease recorded for January 2022, which was just over 70 cents per litre.
South Africa is heavily reliant on fuel imports, meaning that almost all of our petrol and diesel comes from overseas. Therefore, the country is constantly at the mercy of external factors – such as the crude oil price, and the performance of the Rand against other major currencies.
When those items aren’t in our favour, it makes a petrol price increase all but certain. We’re expecting to learn more about the picture for February in the days ahead, but it’s understood there will be little room for optimism.
