The Automobile Association (AA) has confirmed the bad news for the petrol price in South Africa during February 2021. According to the AA, it is set to increase substantially. The AA blames this spike in price on the slow oil price and Rand/Dollar vulnerability.
Petrol Price increase for February 2021.
The following changes are set to come into effect in the first week of February 2o21. Here are the changes:
- Petrol by 82 cents per litre.
- Diesel by 59 cents per litre.
- Illuminating paraffin by 60 cents per litre.
“Unfortunately our mid-month concerns over the advancing oil price have been borne out in practice. There has been a slow, but steady, rise in the price of oil which is likely to cause ongoing pain at the pumps. Almost all of the fuel price increases reflected by this month’s data are attributable to the stronger oil price, and the average Rand/US dollar exchange rate has remained generally flat for the month, despite some large daily swings.” – AA
The AA also notes that after the rand dropped to an all-time low of over R19 to the dollar in April, we have since returned to about where we were pre-COVID-19. This still won’t help the petrol.
“The record low exchange rate fortunately went hand-in-hand with record low oil prices, so the impact went largely unnoticed as fuel prices plunged. But economic or policy shocks which weigh on the Rand are likely to have a more significant effect on the fuel price now that international oil prices have rebounded.” – AA
Source: AA