‘Hefty petrol price increase’ set to hit South Africa in January

As forecast by the Central Energy Fund, the petrol price is set for a substantial increase next month. In fact, it promises to be a bleak time for all road users in January, as diesel costs are also predicted to soar

How much will the petrol price increase by in January 2021?

According to the projections, petrol prices are set to rise by 34 cents per litre in a few weeks’ time. This would wipe out the last two months of recorded decreases. Meanwhile, diesel consumers will be asked to fork out an extra 52 cents per litre at the pumps. The AA has issued a statement on Tuesday, blaming the spike in global oil prices:

“Fuel prices are set for hefty rises at month-end if current trends continue. It’s been a good month for the Rand so far, with the local currency picking up around 15 cents against the US dollar, but the basic fuel price has shot up since the start of December, raising the spectre of quite substantial fuel price rises if there isn’t a pullback before month-end.” 

“Although the International Energy Agency (IEA) does not expect a significant impact before the second half of 2021, we would not be surprised if optimism over the vaccine has been behind recent oil strength. Further strength might be on the cards if the vaccination plan shows large-scale effectiveness.”

AA statement on the forecast petrol price for January 2021

THE FORECAST PETROL PRICE FOR OCTOBER 2020

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 January 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.

COASTAL

• Petrol: R14.10
• Diesel: R12.37

INLAND

• Petrol: R14.80
• Diesel: R12.97

[FUEL PRICE OUTLOOK] Fuel prices are set for hefty rises at month-end if current trends continue. https://t.co/XkMYb750ut#FuelPrice #SAfuel pic.twitter.com/TMMfnADeUO

— AA South Africa (@AASouthAfrica) December 15, 2020