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Petrol and diesel prices are currently on track for small increases at the start of February after steep cuts in recent months.
The latest estimate from the Central Energy Fund (CEF) shows that the price of 95 unleaded petrol is due for an increase of 11c a litre, while the wholesale price of diesel will increase by between 3c and 8c.
Illuminating paraffin currently shows a slight decrease of around 3c/l.
South African fuel prices are largely determined by international oil costs and the rand exchange rate, as oil is priced in dollars.
"The weaker rand to US dollar exchange rate is contributing most to the expected increases in fuel even if it is by a small margin. However, the more stable international oil prices are having the reverse impact resulting in the lower illuminating paraffin prices," noted the Automobile Association.
The rand started 2024 at below R18.30/$, but on Tuesday reached R18.90 amid concerns that US interest rates may not be cut as early as expected
It is important to note that the outlook is likely to change the projected February fuel prices, which are determined at the end of the month, the AA added.
At the start of January, petrol was cut by 62 cents per litre to R22.49 – the lowest price since July 2023. Diesel was lowered by between R1.18 and R1.26 to R20.63, also the best level since July.
"We remind motorists that a vehicle which is in good condition will use the optimal amount of fuel and will, in the long run, be more economical than a vehicle that has not been serviced or maintained.
"Another critical component to check is tyres; not only are tyres that are in poor condition a major safety risk, but they may also contribute to lower fuel economy if they are not properly aligned, or under or over-inflated. This applies to all vehicles including trailers and caravans which are towed," says the AA.
