Fuel prices set to go up next month

After experiencing significant reductions in fuel prices this month, preliminary data from the Central Energy Fund (CEF) suggests potential increases across all fuel grades in February, excluding illuminating paraffin.

The Automobile Association (AA) commented on the data, indicating that consumers should anticipate slight increments of approximately 11c/l for ULP95, 14c/l for ULP93, and 9c/l for diesel. Illuminating paraffin is expected to see a slight decrease of about 3c/l.

The AA highlighted that the weaker rand-to-US-dollar exchange rate is the primary contributor to the anticipated fuel price hikes, although marginal. However, the association noted that more stable international oil prices are having the opposite effect, leading to lower illuminating paraffin prices.

Despite the uncertainty, the AA recommended that motorists allocate a little extra to their fuel budgets for February. The official adjustment of fuel prices is scheduled to take effect on February 7.

On January 3, South African motorists welcomed the new year with positive news as the retail price of 93 unleaded petrol decreased by 62c/l, while 95 unleaded witnessed a drop of 76c/l. Wholesale diesel prices also experienced decreases, with R1.26/l for 0.005% sulfur and R1.18/l for 0.05% sulfur. Illuminating paraffin recorded a reduction of R1.24/l.

It’s essential to note that this data is mid-month, and the outlook may change before the official announcement of February’s fuel price adjustments by the Department of Resources and Energy at month-end.