Cape Town — The latest report from the Central Energy Fund (CEF) unaudited fuel data shows that petrol prices are set to increase across all forms in February.
Early Automobile Association (AA) predictions indicate an increase of 11 to 14 cents for unleaded petrol while diesel is expected to go up by 9 cents a litre, eNCA reported.
According to Reggie Sibiya, CEO of the Fuel Retailers Association, said the latest conflicts between Israel and Palestine and what’s happening in the red sea, is contributing to the increase.
“The fuel has to be diverted and go around Africa basically. That comes with rates in terms of insurance costs and also the freight costs which are the major cost input into the international oil prices.” Sibiya said. He said both retailers and consumers will be affected by the price hikes.
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The weak rand and global oil components of the local pricing are performing under-recovery, but international prices are the biggest contributors, BusinessTech reported.
The local pricing is still reflecting the surge in oil prices seen at the end of last week, when separate attacks in the Middle East – on US troops in Jordan and a hit on a fuel tanker in the Red Sea – sent prices to the highest point in months.
While the local unit is still trading below R19 to the dollar – sitting at around R18.80 by midday on Monday (29 January) – geopolitical tensions still put the market in risk-averse mode, which does not favour emerging markets.
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Compiled by Matthew Petersen
