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Cape Town - The increase in international oil prices could prevent South Africa's fuel prices falling again in February.
On Wednesday, 93 octane petrol fell by 9c to R7.67 per litre in Gauteng, and 95 octane petrol at the coast fell by 6c to R7.63. Wholesale diesel was lowered by 14c to R6.89 in Gauteng and to R6.76 at the coast.
However, latest figures from the department of energy already show an average under-recovery of 7.7c on petrol since December 31 to Monday, which indicates a possible increase in petrol prices on February 3.
Wholesale diesel is still in an average over-recovery position of 1.5c per litre, but on Tuesday there was an under-recovery of 1.2c.
The cash price of Brent crude oil steamed ahead to $80.18 per barrel on Tuesday - its highest level since early December last year.
The increase is largely because of lower oil stock levels in the US, a weaker dollar and icy winter conditions in the northern hemisphere.
The petrol price should remain stable in the first half of 2010, ETM economist Russell Lamberti says.
Prior to December, the oil price rose to just above $80 once or twice - in October and November - but could not sustain these levels.
"It has now climbed very sharply, and we should be seeing a correction, because the increase was largely on account of the cold weather in China and the US," Investec Asset Management portfolio manager Vivienne Taberer says.
Analysts feel the likelihood of the price falling to below $70 is becoming increasingly remote.
"The blow received by the dollar at the end of last year reduces this possibility," says Christie Viljoen, an economist at NKC Independent Economists. Lamberti also thinks the fundamentals that drove the oil price down to its lows last year are no longer valid.
That means more stability in the local economy for the year ahead.
"There will most probably be corrections in the levels of the oil price and the rand, but they will be smaller movements to which the economy will be able to adapt more easily," Viljoen says.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.