Reserve Bank governor Lesetja Kganyago says that the petrol price in South Africa is expected to rise by 7 cents per litre in February.
The department of energy is expected to release the official fuel price changes for February 2016, on Friday (29 January).
The governor said that international oil prices have declined to multi-year lows since the previous Monetary Policy Committee (MPC) meeting, which was held on Thursday.
“Petrol prices have declined only marginally since November and the current under-recovery suggests a possible increase of 7 cents per litre in February,” he said.
The rand continues to struggle against the dollar, with daily rates in January averaging around R16.40. This compares to the average rate during January 2015 of about R11.59 – a rise of 41.5%.
The rand traded at R16.30 versus the US currency at 16h00 on Thursday afternoon after the Reserve Bank’s Monetary Policy Committee decided to increase the repurchase rate by 50 basis points to 6,75% per annum.
Paul Joubert, senior researcher at Solidarity Research Institute said that there still remains today’s fundamental oil price and exchange rate figures to add to the calculation, which may shift the figures by a cent or two, “but basically we are looking at something like a 6 cent increase in the price of petrol and about 63 or 64 cents decrease for diesel”.
“I see the price of oil has increased significantly today, which may make the increase slightly higher and the decrease slightly less, but we’ll have to wait until the day is done for a final verdict.”
Oil traded at approximately $32.30, a barrel, up 21% from recent lows.
Here are the current inland prices for petrol and diesel: