Weaker rand points to fuel price hikes in February

JOHANNESBURG - Unaudited fuel data from the Central Energy Fund points to increases in prices of all grades of fuel.

The AA predicts an increase of between 11 to 14 cents per litre for unleaded petrol, while diesel is expected to go up by 9 cents a litre.

Reggie Sibiya, CEO of the Fuel Retailers Association, said the latest conflict in Israel and Palestine, and more importantly what is happening in the Red Sea, brings increases in fuel prices.

"The fuel has to be diverted and go around Africa basically," Sibiya said.

READ: Fuel prices expected to increase in February

"That comes with rates in terms of insurance costs and also the freight costs which are the major cost input into the international oil prices."

Sibiya said motorists have to brace for price hikes.

"This actually impacts retailers very badly," he said.

"Most of our costs are linked to the pump price itself."