Fuel prices in South Africa are set for another steep increase in March 2021.
The Automobile Association (AA) has commented on unaudited mid-month fuel price data and the forecast shows another round of sharp increases on the horizon.
The AA reckons that if the current bullish rise in the international oil price continues, South African petrol prices could rise by as much 56 c/l while diesel prices could soar by 47 c/l in March 2021.
The AA commented, "Oil prices advanced at a 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 Rand, however, has strengthened against the dollar by about 8 cents during February but it’s unfortunately not enough to have a significant impact against the price of oil.
"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,” concludes the AA.
South African motorists were hard hit at the beginning of February with hikes of 82 c/litre for petrol and 59 c/l for diesel. Household budgets are under tremendous strain and the ongoing Covid-19 pandemic and the depressed economy isn’t helping matters either. Consumers will have to tighten their belts even tighter in March 2021.