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Another petrol price whopper?

May 30 2008 10:01

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Johannesburg - A petrol price increase of between 41 and 43c a litre is expected to be announced today, according to analysts.

"We had originally looked for a 29c increase in regulated petrol prices for June. However, given recent moves in oil and the rand as well as the high frequency over/under-recovery data, it now looks more likely to be around 41c," say global analysts Lehman Brothers.

Local market analysts ETM say they expect an increase of up to 43c.

They feel this again highlights the challenges faced by the central bank ahead of its rates decision on June 12.

Lehman Brothers notes that this component of CPIX remains a key driver.

The upcoming increase follows hot on the heels of increases of 55c and 68c in the previous two months.

The retail petrol price is adjusted monthly on the first Wednesday of the month in accordance with the previous averaging period's over- or under-recovery.

- I-Net Bridge

 
 
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