The months-long downward trend in fuel prices has reversed sharply in February.<\/p>\n
This is according to the Automobile Association (AA), which was commenting on unaudited mid-month fuel price data issued by the Central Energy Fund.<\/p>
\u201cInternational fuel prices have climbed by over 20 per cent since the last week of January,\u201d the AA said.<\/p>\n
\u201cA spike in the Rand\/US dollar exchange rate has also put pressure on the fuel price, with current data predicting a March price increase for petrol of around 68 cents a litre, with diesel and illuminating paraffin up by approximately 45 and 48 cents a litre respectively.\u201d<\/p>
The AA said this was the first under-recovery in several months and that substantial improvements in both the exchange rate and international petroleum prices would be needed if motorists were to avoid a fuel price hike at the beginning of next month.<\/p>\n
\u201cIt’s too early to tell whether the uptick in fuel prices is mere volatility or a sign that the bottom of the cycle has been reached,\u201d the AA said.<\/p>\n
\u201cWe would, therefore, advise motorists to be cautious before committing the money they have saved on fuel over the past few months to other expenses.\u201d<\/p>\n