FUEL PRICE RISE LOOMING

…Petrol price could jump 56 cents a litre in March, AA warns

JOHANNESBURG - South African consumers can brace for yet another hefty fuel price hike next month, the Automobile Association said on Monday.

The association expects month-end increases of up to 56 cents a litre for petrol, 47 cents for diesel, and 41 cents for illuminating paraffin.

This is due to bullish international oil prices. The AA was commenting on unaudited mid-month fuel price data released by the Central Energy Fund.

"Oil prices advanced at a

February 17, 2020 leisurely pace during January, but the increase has quickened since then. International product prices shot up by around eight percent in the first two weeks of February," the AA says.

On the plus side, the rand/ US dollar exchange rate has worked in South Africa's favour, with the rand strengthening around 8 cents against the US dollar in February, although this has been far from enough to offset the oil price.

"If oil continues on this trajectory, South Africa's fuel prices might edge back into record territory in the medium term. Fuel users also remain vulnerable to economic shocks which might weaken the rand," the AA said.

Meanwhile, consumers in Kenya will pay more for different fuel products following huge adjustments across Kerosene, Diesel, and Super Petrol.

The Energy and Petroleum Regulatory Authority (EPRA) on Sunday increased the prices of Super Petrol, Diesel, and Kerosene by Sh8.19, Sh5.51, and Sh5.32 per litre respectively, changes take effect midnight.

– FIN24/THE STANDARD, Kenya.