Negative outlook for fuel prices in February

Unaudited fuel data from the Central Energy Fund (CEF) points to possible increases in all grades of fuel prices in February, except for illuminating paraffin. Commenting on the data, the Automobile Association (AA) says consumers can expect a slight increase of around 11c/l for ULP95, 14c/l for ULP93, and 9c/l for diesel. Illuminating paraffin is showing a slight decrease of around 3c/l. 

“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,” notes the Association.

It is important to note, that this is mid-month data, and the outlook is likely to change before the official announcement of the February fuel price adjustments by the Department of Resources and Energy closer to month-end.

Despite this the AA recommends that motorists add a little extra to their fuel budgets for February.

 The official adjustment of the fuel prices comes into effect on 7 February, the first Wednesday of February.

ISSUED BY THE AUTOMOBILE ASSOCIATION OF SOUTH AFRICA