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Fuel price continues see-saw

Jan 19 2010 14:49

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Johannesburg - The petrol price is likely to rise in February, economist Tony Twine said on Tuesday.

"It looks like we're looking at an increase of 17c a litre for petrol," he said.

"But things may alter on a daily basis as you have to take into account the oil price and the exchange rate."

Diesel would rise by about 13c, said Twine.

While diesel was regulated up to the wholesale level, service stations could make their own prices, he said.

"The two important variants - the oil price and the exchange rate - seem to move in an offset manner.

"When the oil price is down, the rand is weaker and when the oil price is up, the rand is stronger."

He said the two variants had in the past acted as "shock absorbers" to each other.

"The price movement of refined fuel in the past four to five months has been soft and gentle compared to movement in the price's two drivers," Twine added.

In January, the price of Petrol 93 ULP & LRP dropped by 9c per litre while Petrol 95 ULP & LRP decreased by 6c per litre.

- Sapa

 
 
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