More money to go up in fumes

The Star Early Edition - - NOTICE BOARD -

FUEL prices are set for another hike at the end of Jan­uary, says the Au­to­mo­bile As­so­ci­a­tion (AA), com­ment­ing on unau­dited mid­month fuel price data re­leased by the Cen­tral En­ergy Fund (CEF).

The AA is pre­dict­ing that petrol is set to jump by 44 cents a litre, diesel by 37 cents, and il­lu­mi­nat­ing paraf­fin by 31 cents.

This fol­lows big hikes of be­tween 48c (95 Oc­tane) and 50c (93 Oc­tane) per litre of petrol at the be­gin­ning of this month, with a 39c rise for diesel and 43c for il­lu­mi­nat­ing paraf­fin. At the time lo­cal economists said fuel price in­creases weren’t likely to per­sist through­out the year, but they didn’t pre­dict the sub­se­quent surge in in­ter­na­tional oil prices.

De­spite the Rand/US dol­lar ex­change rate firm­ing at around R13.60 since the start of Jan­uary, the oil price has risen from $51 to $55 per bar­rel over the same pe­riod as ma­jor petroleum ex­porters struck deals to limit their out­put.

This fol­lows an agree­ment be­tween Opec and non-Opec mem­bers to cut pro­duc­tion by about 2 per­cent this year.

This means mo­torists will from Fe­bru­ary 1 fork out R13.29 for a litre of 95 Un­leaded at the coast and R13.77 in Gaut­eng, with a litre of diesel cost­ing R11.40 and R11.79 re­spec­tively.

“There is al­ways the hope that the spike in in­ter­na­tional oil prices will not per­sist, but that seems un­likely,” the AA said this week.

“South Africans should al­ready be think­ing of trim­ming any un­nec­es­sary ex­penses to ac­com­mo­date a se­ries of fuel price hikes which seem likely in the medium term,” the AA con­cluded.

- IOL Mo­tor­ing

The price of fuel is set to go up again.

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