Strong international oil price likely to drive May petrol price up

BY CHARL BOSCH - MAY 3, 2016

The Automobile Association (AA) has warned that the gradual strengthening in international oil prices could result in further petrol price hikes for May.

In a statement, the organisation said a drop in oil demand would have resulted in the price at the pumps falling by up to 29 cents a litre, but that the sudden upturn would mean a price hike of 12 cents per litre this month.

“International petroleum prices have settled into a pattern of gains which are not always being overcome by recent Rand strength against the dollar. We forecast steady rises in the price of fuel in South Africa in the short to medium term, with the possibility of larger spikes if the Rand comes under pressure,” the AA said.

A short while ago, the national currency was trading at R14.30 against the US Dollar with Brent Crude Oil trading at $46.21 a barrel.