Mike Schussler has echoed fellow economist Tony Twine’s prediction of a big fuel increase on September 1, but believes the hike will be about 25 cents a litre next month and in October.
Mike Schussler has echoed fellow economist Tony Twine’s prediction of a big fuel increase on September 1, but believes the hike will be about 25 cents a litre next month and in October.
CARtoday.com reported although fuel prices decreased by 23c-a-litre earlier this month, consumers would no longer be protected against the effects of international crude oil prices because the rand weakened significantly after the interest rate cut.
Twine predicted a 14c-a-litre hike in the price of petrol next month, but on Thursday T-Sec chief economist Schussler said he expected the price of 95 octane petrol to climb 25 to 30 cents next month and a further 20 to 25 cents in October.
“The exact figures are still difficult to calculate because of the mercurial price of oil, racing up one day then plunging the next,” Schussler said. If the increase comes to pass, inland motorists will be paying close to R5 a litre for petrol.
reported that oil prices neared the $50 a barrel threshold on Friday after hitting record levels amid heightened concern about supplies in Iraq, and doubts over how much extra crude could be pumped anytime soon to ease the price surge.
Market watchers said some investors had started to whisper about the possibility of $60 a barrel, even as they cautioned that sentiment could turn rapidly if tensions in global hotspots abated, or demand dropped as users started to economise in earnest.
