Motorists have reason to get worried! They may need to prepare to pay more at the pump at the beginning of May.
Analysts say that the latest rise in the price of Brent crude oil, and the slight depreciation of the rand could spur a petrol price increase.
The South African Petroleum Industry Association’s Gadibolae Dihlabi says that the Central Energy Fund’s latest numbers point to a fuel price hike.
“The price movement in South Africa is mainly influenced by two factors, the dollar-rand exchange rate and the international oil price movement. Based on the latest information from the Central Energy Fund on 10 April, the price of fuel is under recovery. At this moment, that signals that there is going be an increase in fuel price.”
The price of a Brent crude oil has exceeded the 70-dollar mark, trading up by almost 3% after a slightly unsteady start to the week. The weaker dollar, followed by geo-political tensions are some of the factors boosting oil prices.
Other issues helping to lift oil prices are Chinese President Xi Jinping’s promise to cut import tariffs for certain sectors and the creation of a favourable environment for foreign investment and global trade.