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Motorists should prepare for a petrol price hike in two weeks

by , 18 February 2015

Over the past couple of weeks, the oil price has broken from its downward spiral and been rapidly rising.

This along with a weak rand is pointing to a hike in the fuel price in the first week of March.

Let's take a closer look at what motorists could be paying at the pump in two weeks' time…

Petrol price cuts look over for now

Yesterday, the Automobile Association (AA) warned motorists that the respite in the petrol price could be coming to an end, says Fin24. This follows the release of data by the Central Energy Fund, which suggests the “downward trend in fuel prices” is over.

“Since the last week of January,” the oil price has risen over 20%, reports IOL. And the rand weakening against the dollar has also put additional pressure on the petrol price.

The Central Energy Fund’s data suggests that the price of petrol could rise “around 68c a litre” on 4 March, adds IOL. The price of diesel could rise around 45c a litre.

For the year so far, the price of petrol (93 octane) is down R2.20 a litre, notes the SABC. That adds to the substantial cuts in the petrol price in the second half of last year.

The rising oil price and weak rand are to blame

At this stage in the month, there would have to be a significant fall in the oil price or a stark recovery of the rand against the dollar to offset a petrol price hike, says iAfrica. The AA says that at this stage it’s uncertain if the oil price is going to continue to rise or it’s down to “mere volatility”.

So unless the oil price tumbles again and the rand strengthens, it looks likely that motorists will be paying more at the pump come the start of March.

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Motorists should prepare for a petrol price hike in two weeks
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