SOUTH AFRICA – In an unsettling revelation, the Automobile Association (AA) has disclosed that South African motorists should brace themselves for significant petrol price increases in February. The AA’s warning is based on the current unaudited fuel data from the Central Energy Fund (CEF), which indicates a sharp uptick in fuel costs across all grades.
According to the data, both 93ULP and 95ULP petrol are poised to surge by 64 cents per litre and 66 cents per litre, respectively. Diesel is not exempt from the upward trend, with an expected increase of around 63 cents per litre. Illuminating paraffin is also forecasted to become 47 cents per litre more expensive in February.
The AA attributes these impending price hikes to fluctuations in international oil prices, constituting a significant percentage of the increases. Additionally, a weaker average Rand to US Dollar exchange is contributing a smaller yet impactful margin to the expected surge.
If these projections hold, a litre of 95ULP inland will jump from the current R22.49 to R23.15, while 93ULP inland will experience an increase from R22.17 to R22.81. This abrupt rise in fuel prices is expected to harm household budgets, hitting consumers early in the year as many are still recovering from festive season spending.
“The cumulative effect on personal finances will be a further reduction of disposable income, exacerbated by increases to goods and services aiming to recoup higher fuel input costs,” notes the AA.
In light of these developments, the AA advises consumers to monitor their fuel usage carefully and adjust their budgets accordingly. The new fuel prices are set to take effect next Wednesday. The AA also suggests practical measures for motorists, such as ensuring vehicles are well-maintained and in good mechanical condition, planning routes carefully, and avoiding heavy traffic when possible, as ways to optimize fuel consumption.
As the nation grapples with economic uncertainties, these fuel price increases add burden to already stretched budgets, prompting South Africans to adopt more mindful spending habits and prepare for the challenging months ahead.
Tags: AA Automobile Association