Africa Oil & Gas: South Africa’s Petrol price likely to go up in February

The price of petrol is likely to go up and that of diesel down in February, according to the Automobile Association (AA).

The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund (CEF).

The current picture shows petrol increasing by around eight cents a litre, while diesel is set to drop by three cents and illuminating paraffin by nine cents, in the view of the AA.

The difference in the price changes relates mainly to the differences in the international product prices of diesel and petrol.

“International oil prices have reached a slightly higher plateau after climbing in the first half of January,” the AA said.

“Over the same period, the rand has firmed gradually against the US dollar.”

The AA pointed out that the average rand strength against the US dollar has been increasing for nearly a month, and the association is hopeful this may point to a period of greater stability for the currency.

“If international oil prices continue their current stable trend, South African fuel users may see fewer of the wild swings in fuel prices which characterised 2018,” the AA concluded.

Earlier this month the AA still predicted that the fuel price would likely fall in February, based on unaudited mid-month fuel price data released by the CEF.

At the time the AA warned these figures could fluctuate in the second half of the month due to changes in the international oil price and in the rand/dollar exchange rate that “could also throw a spanner in the works”.

The current inland coastal price for a litre of unleaded 95 octane petrol is R14.01. If this were to reduce by 12c a litre, the new price would be R13.89/l.source: miningweekly/ news24wire