Wednesday, February 06, 2008

Petrol Price Set To Increase Again By 30 cents

The Rand is now R7.65 to the $ after being close to R7 for a number of weeks. This does not bode well for petrol prices, as we pay for imported Brent Crude in dollars, and a weak Rand means fuel prices become relatively more expensive.

The 30 cent estimated increase ought to happen next month, in March. February and March are traditionally months when oil prices dip as US demand for heating oil decreases. South Africa is currently paying the record prices for the resource, and this trend is set to continue.

The reason for the increased cost of petrol in SA has been blamed on the use of generators. It must be remembered that we put around 50 000 new vehicles on the road each month. The energy has to come from somewhere. Only a modest fraction of our fuel is synthesised locally.

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