News24
26 Feb 2021, 14:10 GMT+10
Fuel users need to prepare for steep hikes across the boards with petrol prices expected to climb by 66 cents per litre, while diesel and illuminated paraffin will be up 57c/l and 49c/l respectively, according to the Automobile Association (AA).
The AA on Friday issued a statement outlining its fuel price estimates for March, based on the unaudited month-end fuel price data released by the Central Energy Fund.
"South African fuel users are set to be hit with yet more steep price hikes going into March," the statement read.
The association noted that the rand had performed well against the dollar, but it was not enough to offset the climb in oil prices.
"The international oil price seems unstoppable. We are in an eight-week streak of price climbs with no sign yet of a ceiling," the statement read.
According to the AA, increased economic activity due to the global rollout of Covid-19 vaccines contributed to firming demand for oil, and subsequently higher prices. Saudi Arabia's surprise cut in daily production targets also contributes to higher oil prices.
US oil production also tailed off during the first wave of the Covid-19 pandemic, amid the glut in oil supply. However, its inventories have now dropped to a normal range. Production needs to catch up with the falling inventory, otherwise the oil price will come under further pressure, the AA noted.
"Until oil supply and demand settle into stability, more hikes are likely. And, we cannot forget that April will already start with a significant addition of 26 cents a litre to fuel prices because of increases to the General Fuel and Road Accident Fund levies - inflicting further blows to already battered South African consumers," the AA said.
Domestically, petrol prices spiked by 81 c/l in February, while that of diesel climbed by 59c/l, Fin24 previously reported.
Get a daily dose of Manufacturing Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manufacturing Mirror.
More InformationPublicly, Beijing has presented itself as a neutral party in the war sparked by Russia's full-scale invasion of Ukraine, claiming it...
London [UK], July 11 (ANI): New UK package of support for Ukraine's immediate and longer-term needs was tabled at Ukraine Recovery...
Arrests of critics mount as authorities allege a wide-ranging plot to overthrow Prime Minister Nikol Pashinyans government An Armenian...
Patna (Bihar) [India], July 9 (ANI): RJD leader Tejashwi Yadav on Wednesday heavily criticised the Election Commission of India for...
Fazilka (Punjab) [India], July 9 (ANI): Two accused in the murder of Abohar businessman Sanjay Verma were killed in retaliatory police...
Patna (Bihar) [India], July 8 (ANI): Bihar ADG Kundan Krishnan on Tuesday informed that the shooter who was involved in the businessman...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
New Delhi [India], July 11 (ANI): Trade negotiations between the United States and China are moving slowly, raising the chances that...
(Photo credit: Brad Penner-Imagn Images) Anthony Volpe scored the tiebreaking run on a bases-loaded sacrifice fly by Aaron Judge...
(Photo credit: Jordan Johnson-Imagn Images) Pete Crow-Armstrong crushed a pair of home runs and right-hander Colin Rea handled the...
GUANGZHOU, July 10 (Xinhua) -- As global industries accelerate their transition toward intelligence and sustainability, China's innovative...
URUMQI, July 10 (Xinhua) -- A total of 24 journalists from 23 countries have participated in a media tour of northwest China's Xinjiang...