Ricochet News

Modest fuel price increase expected in March - thanks to stronger Rand

Feb 15, 2017
Modest fuel price increase expected in March - thanks to stronger Rand

The Automobile Association (AA) on Wednesday said that the unaudited mid-month fuel price data released by the Central Energy Fund (CEF), points to a relative fuel hike in March.

According to the AA, the current fuel price outlook for March shows a ‘standoff’ between rising international petroleum prices and a stronger Rand against the US dollar.

“In the first half of February, international petroleum prices increased by the equivalent of ten to twelve cents a litre, while the rand firmed by about seven cents against the US dollar,” the association said.

“As a result, the current data suggests a very modest fuel price increase of between three and four cents a litre for vehicle fuels, and a drop of around three cents a litre for illuminating paraffin.”

The association said that any sudden spike in oil prices or move in the Rand could change the situation suddenly.

“Under the circumstances, it would be speculative to pronounce on what the fuel price picture is likely to be at month end,” the AA said.