Fuel price hike expected in January

According to the Automobile Association of South Africa (AA), motorists can expect to pay more for fuel in the New Year. This follows from a review of the unaudited mid-month fuel price data from the Central Energy Fund (CEF).

The first few weeks of December have shown a strong increase in oil prices, while the Rand has remained volatile against the US dollar. “Based on the current data, the indicative increase in fuel prices at the end of December will be around 27 cents a litre for petrol, 21 cents for diesel and 28 cents for illuminating paraffin,” said the AA.

However, Saudi Arabia has indicated that proposed oil production cuts may exceed those mentioned in November. The AA warned that the impact of production cuts was not factored into the current oil prices.

“If the oil-producing countries adhere to the proposed production cuts, oil prices are likely to strengthen until demand and production move back into equilibrium,” stated the AA.

The AA has advised private motorists to review their energy use and commuting patterns, as well as to consider alternatives to single-occupant vehicle use. This can include car-pooling or making use of public transport.

“Mitigation will be the key strategy against prolonged fuel price rises,” added the AA.

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