Cape Town – The Automobile Association on Monday warned motorists to brace for another hike in fuel prices at the end of January.
Commenting on unaudited mid-month fuel price data released by the Central Energy Fund (CEF), the AA said the the rand/US dollar exchange rate has firmed slightly since the start of January 2017, but international oil prices have surged ahead by a far greater margin.
The AA is predicting that petrol is set to jump by 44 cents, diesel by 37c, and illuminating paraffin by 31c.
By midday on Monday, the rand was trading at R13.62/$ and oil was selling at $55.64 a barrel.
The retail price of petrol (93 octane) increased by 50 cents per litre and that of 95 octane by 48c/l on January 4 2017.
The wholesale price of diesel (0.05% sulphur and 0.005% sulphur) also increased by 39c/l and 39c/l respectively, while the wholesale price of illuminating paraffin went up by 43c/l.
“There is always the hope that the spike in international oil prices will not persist, but that seems unlikely,” the association said.
“South Africans should already be thinking of trimming any unnecessary expenses to accommodate a series of fuel price hikes which seem likely in the medium term,” the AA warned.