TRIPOLI: Motorists may have to pay more for petrol over the next two months after having enjoyed six months of consecutive price cuts.The rand has been firmer but the benefits have been slightly cancelled out by rising oil prices. Official data is pointing to a possible petrol price increase of 11c/l. This would be the first increase.
“Unfortunately, I think the petrol price benefit will start to reverse next month,” said Stanlib chief economist Kevin Lings. The petrol price has fallen from R14.33c/l in August to R10.31 with the biggest decline being a R1.23c/l drop last month.
Fuel prices are a function of several factors including oil prices and the rand exchange rate. While the rand has been firmer, crude oil prices rose by as much as $1 on Friday to $58 a barrel, continuing a rebound from near six-year lows plumbed last week.
Crude oil prices closed more than 4% higher as conflict in oil producer Libya and an expected boost in demand following China’s central bank easing helped the market rebound.
Mr Lings said that although the oil price would drift a little higher in coming months, it would probably end the year at about $60 a barrel and not recover to the $110 a barrel seen in the middle of last year.
