Massive petrol hike on the cards

Business News

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Massive fuel hikes above R1 a litre are on the cards for all grades of fuel going into March. This is according to the Automobile Association (AA) which was commenting on fuel price data released on Friday by the Central Energy Fund (CEF).

AA said The data is showing an increase of R1.25 a litre for 95 octane petrol, R1.24 a litre for 93 octane, R1.29/l for diesel and a significant increase of R1.22/l for illuminating paraffin.

An analysis of the movement in fuel prices so far in February shows international petroleum prices are contributing entirely to the expected increases with the stronger Rand buffering what would have been more significant increases.

“The Rand is currently trading in a more positive band than it has for some weeks with the local currency shaving around 17 cents off oil’s negative movement. Without this, the expected increases could have been between R1.40/l and R1.47/l for fuels across the board” noted the AA.

Given the current outlook, petrol prices in South Africa will skyrocket above R21 for the first time, with 95 octane petrol in Gauteng costing around R21.39 a litre and 93 octane petrol costing R21.13 per litre.

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