Rand rallies but petrol price will still increase

The Automobile Association of South Africa expects fuel prices to increase in February, despite the rand staging somewhat of a comeback against the US dollar this month.

The fightback from the rand does mean that the increase is not as significant as initially expected though, with the prediction being that the price of petrol will rise by 30 cents, diesel by 22 cents and paraffin by 16 cents.

“International oil prices remain near their recent highs, but the rand has strengthened around ten cents against the US dollar since January 15,” said the AA on Friday.

“This has caused a marked improvement in the fuel price picture since mid-month.”

The AA warned that South Africa and the world would enter a period of considerable uncertainty this year, adding that motorists should create space to manoeuvre, should the situation change drastically, because of economic and political pressures on the rand.

“We advise motorists to create as much space as they can in their household budgets to accommodate possible future fuel price hikes.”

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