|
|
Please tell us what you think of this article by clicking on a button & rating it:-
SA: Oil Price: Petrol climbs to the R10 markDate Posted: Friday 02-May-2008With an expected increase of 20 to 25 cents a litre next Wednesday, the petrol price is well on the way to hitting the R10 mark in two to three months, economists warn.
The price for petrol on the coast is R8.67 a litre. Next week's increase should push it to just under R9.
"The increase should be around about 20 to 25 cents a litre. It won't hit R10 yet, but you'll probably see R10 at some time (soon)," said Dawie Roodt, chief economist at the Efficient Group.
With trends like the dollar-rand exchange rate, oil price increases and other contributing factors, consumers could expect petrol to reach R10 in "two to three months", he said.
| 'We've had it difficult in South Africa before, like in 2001' |
"I'm afraid we can't do much as individuals about the fuel price. People could consider getting smaller cars or travelling in car pools. We can also put pressure on the politicians to deregulate petrol. But we've had it difficult in South Africa before, like in 2001," Roodt said.
"There's no reason to panic. If people stick to their budgets and become conservative in their spending they shouldn't panic.
"The economy is still growing. There is talk of a recession, but some sectors are already in recession. It is a healthy correction we're going through."
Adenaan Hardien, chief economist at Cadiz African Harvest Asset Management, said the possibility of R10 a litre could not be dismissed if current trends continued. South Africa's petrol price was linked to the international price of crude oil, and affected by the rand-dollar exchange rate, Hardien said.
Deregulating the industry wouldn't happen any time soon as the government had an arrangement to regulate the petrol price with the petroleum industry.
| 'I would certainly be wary of a quick-fix solution' |
Oil prices hit a record high of almost $120 a barrel on Monday following a weekend refinery strike that closed a pipeline system supplying a third of Britain's North Sea oil to refineries.
Also, the strike followed supply shutdowns in Nigeria.
"International prices of crude oil are quite high," Hardien said. "But I can't see major benefit in deregulating petrol. I would certainly be wary of a quick-fix solution. But of course (petrol) could hit (R10)."
babalo.ndenze@inl.co.za
|