15 February 2013

South Africa: Petrol Price May Jump

Photo: Herby Hönigsperger/Flickr
South African petrol station.

Johannesburg — Consumers may be in for a hard time as the petrol price is expected to rise by up to 80 cents a litre next month, an economist said on Friday.

Lulu Krugel, economist at KPMG, said the international oil price had been rising and the rand weakening, hence the fuel hike was inevitable.

"If we look at the under-recovery where we are now on 87 cents for petrol, that means we'll probably see around 87 cents increase in petrol if things stay the way that they are for the rest of the month," said Krugel.

"Diesel will be around 60 to 65 cents. It is not looking good at all."

She said last month's fuel increase was also caused by the same factors -- an increase in the international oil price and a weak rand.

On February 6, the retail price of all grades of petrol increased by 41 cents a litre.

Diesel with 0.05 percent sulphur rose by 17.8 cents a litre wholesale, and diesel with 0.005 percent sulphur also by 17.8 cents a litre.

Another contributing factor, Krugel added, was the political instability in the oil-producing countries, most notably the Syria conflict.

Krugel said the good signs of economic recovery in the next months could further increase the oil price, as global demand picks up.

Copyright © 2013 South African Press Association. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.