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Petrol to top R9/litre by year-end

May 02 2010 09:35 Francois Williams

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Cape Town – The price of petrol could return to R9 per litre by the end of the year, said Economists.co.za economist, Mike Schüssler.

The latest 14c/litre petrol price hike, due to come into effect on May 5, will add R7 to the cost of fillingl a 50-litre tank. Wholesale diesel will be 29.5c/litre more expensive.

From Wednesday, 93-octane petrol in Gauteng will be 14c up at R8.54/litre. At the coast 95 octane will be 13c more expensive at R8.48.

Wholesale diesel will cost R7.81 in Gauteng and R7.67 at the coast. The wholesale price of paraffin will go up by 30c/litre.

Schüssler based his forecast of a R9/litre petrol price by year-end on the expectation of a continuing recovery in the global economy, a gradual upward trend in the oil price and a continuation of the current strength of the rand/dollar exchange rate.

In particular, he expected oil to rise to above $90/barrel in the second half of this year as continuing growth in China and India boosts the price of oil.

From Wednesday motorists should closely inspect the prices on petrol pumps and complain if they see discrepancies.

The department of energy has adjusted the fuel price transport levy, which means differential price increases.

In coastal zone 1A, the petrol price will rise only 13c, in zone 4A (which includes towns like Knysna, Moorreesburg, Tulbagh, Eshowe and Alexandria) only 12c, and as much as 19c in zone 17A (the Gordonia region in the Northern Cape).

 - Sake24

 
 
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