Consumers could be paying R10 a litre for petrol

Motorists could be paying R10 a litre for petrol by June

Economists say the petrol price in South Africa is expected to remain between the R8-R9 a litre band this year, although if the oil price continues to rise at a rapid rate, consumers could be paying R10 a litre by the middle of the year.

Some analysts say oil can go to $120/barrel, while others see it coming back to a more stable rate of $80. Economist Russell Lamberti says he is inclined to follow the more fundamental view that oil will correct in light of a recession in the US and its repercussions for markets like Japan and Europe.

Lamberti says: "However, I think to say we will go below R8 a litre is optimistic. We should be in the R8-R9 band this year and it means that people will just have to get used to expensive petrol."

It was announced today that the retail price of petrol would increase by between 66 cents and 68 cents a litre from Wednesday. This is after increasing by 61 cents per litre last month and 17 cents the month before.

The Department of Minerals and Energy said that 91 octane unleaded petrol would go up by 68 cents a litre, while 93 octane unleaded and lead replacement petrol will go up by 67 cents a litre and 95 octane by 66 cents a litre. The retail price of a litre of 95 octane inleaded petrol in Gauteng increases to R8,91c/litre and to R8,67c/litre at the coast. - I-Net Bridge