The months-long downward trend in fuel prices has reversed sharply in February. This is according to the Automobile Association, which was commenting on unaudited mid-month fuel price data issued by the Central Energy Fund.
“International fuel prices have climbed by over 20 percent since the last week of January,” the AA said. “A spike in the Rand / US dollar exchange rate has also put pressure on the fuel price, with current data predicting a March price increase for petrol of around 68 cents a litre, with diesel and illuminating paraffin up by approximately 45 and 48 cents a litre respectively.”
The Association said this was the first under-recovery in several months and that substantial improvements in both the exchange rate and international petroleum prices would be needed if motorists were to avoid a fuel price hike at the end of the month. “It’s too early to tell whether the uptick in fuel prices is mere volatility or a sign that the bottom of the cycle has been reached,” the AA said. “We would therefore advise motorists to be cautious before committing the money they have saved on fuel over the past few months to other expenses,” the Association concluded.
About The Automobile Association of South Africa: The Automobile Association (AA) has been the trusted champion of the South African motorist and traveller for over 83 years. Along with our AA Accredited Sales Agent stores located countrywide, The AA offers access to 31 Member-only benefits in 1 card as well as other travel and mobility services that extend far beyond 24-hour roadside assistance – from technical and legal advice to emergency rescue services and roadside security. The AA Fleetcare team will take care of all your corporate needs. The AA Technical College offers specialised apprenticeships to help motor industry players build in-house skill, and short skill courses for individuals.
For more information visit www.aa.co.za or aasa.mobi