As the price of oil continues to climb SA motorists can expect to cough up more for fuel in March.
Image: bizoon / 123rf
CRA Personal Finance & Motoring News – South Africa
BY AASA AND MOTORING REPORTER
Visit CRA’s blog page for more relevant articles.
Bullish international oil prices are setting the stage for yet another hefty hike in fuel prices. This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.
The association says the current picture shows month-end increases of up to 56c a litre for petrol, 47c for diesel, and 41c for illuminating paraffin.
“Oil prices advanced at a leisurely pace during January, but the increase has quickened since then. International product prices shot up by about eight percent in the first two weeks of February,” the AA says.
The association notes that on the plus side, the rand/US dollar exchange rate has worked in SA’s favour, with the rand strengthening about 8c against the US dollar in February, though this has been far from enough to offset the oil price.”
The AA said if oil continues on this trajectory, SA’s fuel prices might edge back into record territory in the medium term. Fuel users also remain vulnerable to economic shocks which might weaken the rand.
Download our FREE In Case of Emergency (ICE) Contact List and Accident Assist Checklist here.
Article Credit to Times LIVE.
What are your thoughts on the continuous fuel price hikes over the last 2 months? Do you think it will continue? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
