Petrol price could go above R10 in April

2011-03-08 00:00

PETROL prices are firmly on the march toward the dreaded R10 a litre mark, on the back of social unrest and geopolitical tension in north Africa, particularly Libya.

Motorists are set to pay as much as 51 cents a litre more for fuel on April 6 — and fuel levy hikes also kick in next month.

Finance Minister Pravin Gordhan raised the general fuel levy by 10 cents a litre and the Road Accident Fund levy by eight cents.

Petrol prices rose by 26 cents and 43 cents a litre in February and March respectively, and motorists are paying 16,6% more than last year.

A senior economist with Econometrix, Tony Twine, told The Witness yesterday that the under-recoveries on both petrol and diesel prices are substantial.

The diesel price is set to increase by as much as 57 cents a litre in April. The price of diesel with a 0,05% sulphur content was hiked by 64 cents a litre in March.

The diesel price has risen by about 25% year on year.

Although global oil prices have skyrocketed in recent months, Twine believes the price is driven by fear rather than the realities of supply and demand.

He predicted the oil price will peak shortly, only to revert to the $100 per barrel level soon after.



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