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Fuel prices will increase in February, but not by as much as expected, after the Rand staged a comeback against the US dollar in late-January

International oil prices remain near their recent highs, but the Rand has strengthened around ten cents against the US dollar since January 15

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

Petrol is expected to cost 30 cents a litre more, diesel 22 cents, and illuminating paraffin 16 cents, but the AA warned motorists not to rely on a softer fuel price position in the medium term.

International oil prices have been on an upward trend since the start of December 2016. Uncertainty still exists about where oil will find its new price equilibrium when the OPEC production cuts start to filter into the global economy, and pointed out that the Rand remains vulnerable to political and economic shocks.

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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