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Petrol could reach R14/litre in 2013

Jan 03 2013 15:30 Byron Messaris
Petrol

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Cape Town – The latest drop in the price of petrol and diesel is likely to be short-lived, the Automobile Association warned on Thursday.

According to AA spokesperson Gary Ronald, in 2013 South African motorists can expect the fuel price to peak at about R13.50 to R14.00, with an outside view of even spiking to R15 depending on politics and the US economy.

“A car with a 60 litre tank can expect to pay an extra R120 per fill up on average,” said Ronald.

Last year also started off with a falling fuel price, which however rose month for month until June, when petrol costs dropped, only to spike again in August (+22c) and September when the pump price of petrol jumped by 93 cents a litre.

“With all the swings and roundabouts factored in, motorists have spent on average an extra R2/l on fuel year on year in the past few years,” said Ronald.

Last year motorists paid in total R1.35 and R1.40 more for a litre of 93 ULP and 95 ULP respectively, and R1.35/l more for 95 unleaded and LRP. At the start of 2011, fuel cost between R8.46 and R8.73 and ended the year at between R10.32 and R10.66.

The highest price motorists paid in 2009 for a litre of petrol was R8.05, after starting the year as low as R5.68 for a litre of 93 unleaded.     

“Fuel prices will thus continue to increase despite price adjustments,” said Ronald.

Nedbank economist Nicky Weimar said the rand and global oil prices are two volatile factors that will continue to influence fuel prices. 

“There is going to be persistent pressure on the rand in 2013, which is very unpredictable and is going to hinge on the upcoming ratings,” said Weimar.

“Global oil prices are also quite volatile given the geopolitical risk of the Middle East, but realistically oil is probably overpriced given the current state of the global economy.”

Weimar added that barring a massive drop in global oil prices, fuel prices in 2013 will end higher than in 2012. 

The price adjustment on January 2 saw a litre of 93 ULP slipping by 13c and that of 95 ULP by 15c. The price for 0.05% sulphur diesel fell by 27.58c, while that of 0.005% sulphur diesel tumbled by 28.58c.

 - Fin24

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