Petrol price fuel

Petrol station / TSA stock photo

Petrol price: Bad news for SA motorists as fuel hikes expected for February

For the first time in four months, the petrol price is set to rise in South Africa, as the cost of crude oil stages a steady comeback.

Petrol price fuel

Petrol station / TSA stock photo

Well, we had a pretty decent run, didn’t we? After the petrol price fell dramatically in December and January, it seems like reality has returned to the pumps of South Africa.

The AA have analysed the data from the Central Energy Fund, and it’s bad news for the majority of us. Although diesel prices look set for a decrease, petrol prices will be rising, albeit by a fraction.

How much will petrol prices rise in February?

Road users can now expect to pay eight cents more per litre of petrol, whereas diesel consumers are on course for a three-cent drop. Admittedly, neither of these changes pose a significant difference from current prices, but it’s not exactly an encouraging sign for the months ahead.

In a written communication issued on Tuesday afternoon, the AA remained pragmatic about the situation. They blame a steady increase in oil prices for having a knock-on effect in Mzansi, but state that a strengthening rand was able to “offset” the predicted increases:

“International oil prices have reached a slightly higher plateau after climbing in the first half of January. Over the same period, the Rand has firmed gradually against the US dollar. It began the month at nearly R14.50 to the dollar and is currently hovering around R14.00, offsetting the oil price rise to some degree.”

“If international oil prices continue their current stable trend, South African fuel users may see fewer of the wild swings in fuel prices which characterised 2018.”

AA

Expected petrol price for South Africa, February 2019:

(Based on price per litre)

  • Petrol price for coastal regions: R13.85
  • Petrol price for inland regions: R14.18
  • Diesel price wholesale: R13.11

“Fluctuating costs”

Two weeks ago, the AA thought that the petrol price would be dropping for a third consecutive month. In the last fortnight, that pesky crude oil price has managed to climb above December’s average, knocking initial predictions out of kilter. The motoring specialists did warn that the mid-January forecast was likely to change, though.

The official price will be confirmed by the Department of Energy in the next few days. Any increase will be the first movement of it’s kind since October, where a whopping R1 was added to the per-litre petrol price. Thankfully, this one does not look like it will be anywhere near as painful.