JOHANNESBURG, South Africa – Vehicle fuel prices will most probably increase at the end of December (2020) according to the Automobile Association after unaudited mid-month fuel-price data was released by the SA Central Energy Fund.
The motoring organisation told The Corner: “It’s been a good month for the rand so far. It has rising about R0.15c against the US dollar but the basic fuel price has shot up since the start of December, raising a spectre of quite substantial fuel price rises if there is no pullback before end January 1 2021.
“Diesel and illuminating paraffin are the worst hit: current data shows an increase of R0.52/litre for these fuel types but petrol hasn’t escaped – an increase of as much as R0.34/litre is possible.”
The AA adds that the increases come despite significant global refining over-capacity and a slight increase in the world oil supply against falling demand.
The AA also said the International Energy Agency’s comments regarding optimism that an effective vaccine for Covid-19 might accelerate the economic recovery from the pandemic.
DOES COVID HOLD THE KEY?
“Although the IEA does not expect a significant effect before the second half of 2021 we would not be surprised if optimism over the vaccine has been behind recent oil strength.
”Further strength might be on the cards if the vaccination plan shows large-scale effectiveness.”