Auto

Motorists to feel the pinch at the pumps with steep January fuel price hikes

Motorists can count on hefty fuel price will increase in early January amid rising international oil costs and regardless of a strengthening rand.

This is in accordance to the Automobile Association (AA) which on Monday 4 January 2021 launched anticipated fuel pricing, together with paraffin, for the first month of the new yr.

The AA, which described the will increase as “significant”, made its assessments primarily based on unaudited month-end fuel price knowledge launched by the Central Energy Fund.

“Fuel prices will rise significantly in January. The rand has continued to advance against the US dollar, which is a pleasing outcome considering the severe beating the currency took earlier in the year. But even the currency’s ongoing strength has not been enough to contain oil’s march back towards its pre-COVID-19 price levels,” mentioned the AA.

What you’ll pay at the pumps

“The outcome is steep increases across the board. Petrol is set to rise by up to 43 cents a litre, and diesel and illuminating paraffin by 55 cents,” mentioned the Association.

Unleaded 93

According to the AA, coastal costs for unleaded 93 petrol on 4 November, 2020 was set at R13.88 per litre and at R13.75 per litre on 2 December of the similar yr.

According to the AA, which mentioned the new fuel prices will come into impact on Wednesday 6 January 2021, motorists can pay R14.18 per litre at the pumps.

Inland, for the similar two durations final yr, motorists paid R14.39 and R14.26 per litre respectively. Motorists there’ll now pay R14.69 per litre.

Unleaded 95

Coastal costs for the similar durations for unleaded 95 petrol was at R13.89 and R13.76 per litre respectively. Inland, costs for 4 November  and a couple of December 2 2020 have been at the respective costs of R14.59 and R14.46 per litre.

The anticipated new pricing will now be R14.16 at the coast and R14.86 inland.

LRP Petrol

LRP petrol value R13.88 and R13.75 per litre for the similar two durations at the coast in 2020, whereas inland costs mirrored prices of R14.39 and R14.26 per litre.

The new price of R14.18 (coast) and R14.69 per litre inland can even come into impact on Wednesday.

Diesel 500ppm

Diesel (500ppm) pricing at the coast for the similar evaluation durations in 2020 have been at R11.65 and R11.85 per litre, however will improve to R12.40.

Inland, the price per litre beneath evaluation was at R12.25 and R12.45. Motorists will this week see a rise to R13.00 per litre of 500ppm diesel.

Diesel 50pm

Diesel (50ppm), which value R11.69 and R11.89 at the coast throughout the final two months of 2020, shall be elevated to R12.43 per litre.

Inland, the similar fuel, which was beforehand priced at R11.69 and R11.89 in December, will see a rise to R12.43 per litre.  

The rand over a barrel

The AA commented that the rand’s every day change rate had dipped to close to R14.50 to the US greenback throughout December, with the common change rate hovering close to R15. 

The organisation famous nevertheless that it was involved over the practically 13% improve in worldwide petroleum product costs over the similar interval.

While worldwide oil costs have stabilised over the previous few days, the AA mentioned it was too early to inform whether or not “this is a new plateau, or an expected pullback as trading activity declined over the Christmas weekend”.

“The trend up to December 17 was quite markedly upward, and if that picks up more steam in the new year, it won’t bode well for fuel prices in 2021,” the AA famous. 

“While South African fuel prices are well off their record highs, the country’s economy is in a fragile state, and any shocks to international oil prices or the rand/US dollar exchange rate could hurt fuel users badly,” concluded the Association.



Source

Back to top button