Fuel price to go up in January

2010-12-22 00:00

TRAVELLERS returning home from their holidays in the first week of the new year will probably have to fork out more money to fill up their tanks from January 5.

All indications are that the price of petrol will increase by about 22 cents a litre next month.

The price of diesel is likely to rise by about 19 cents a litre.

An increase in the petrol price in January 2011 would be the fourth successive price hike, bringing the price of 95 unleaded petrol (coastal) to about R8,43 per litre.

This would reverse price gains made between May and October as a result of lower global oil prices and the strong rand.

The chief economist of Econometrix, Dr Azar Jammine, told The Witness that although the strength of the rand has limited heftier price hikes, crude oil prices have risen significantly over the past few months.

A cold winter in Europe and the U.S. drove oil prices to more than $93 (R632) a barrel yesterday.

The Energy Department is expected to make an announcement on the January fuel price changes next week.

The under-recovery on petrol and diesel amounts to between 20 and 25 cents a litre.

An under-recovery on a fuel product essentially means mtorists are paying too little for a fuel product on that day.

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