The AA’s view on the petrol price in March

Fuel price set for further jump

19 February 2014

International petroleum prices have risen and are offsetting a more stable exchange rate, raising the spectre of another substantial fuel price hike at the beginning of March. This is according to the Automobile Association's analysis of mid-month fuel price data supplied by the Central Energy Fund.

“The average exchange rate eased to around R11.10 to the US dollar in the first half of February,” the AA said. “Unfortunately, international petroleum prices went in the other direction and South Africa's motorists will be forking out substantially more for fuel at the beginning of March unless the underlying fundamentals improve.”

The current data shows an under-recovery of between 30 and 33 cents per litre  for petrol, while the diesel under-recovery is hovering around 26 cents per litre. Illuminating paraffin has fared slightly better with an under-recovery of 18 cents per litre. “These are the fuel price increases South Africans are facing unless there is a turnaround in the next two weeks,” the AA concluded.

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