Oil Market Report 28th September 2011
(Thanks to David Blood for this)
Consumers are in for a stormy ride as the price of petrol could increase by as much as 55 cents next month. It has come to light that Transnet has applied for an 83% pipeline tariff hike.
The hike applied for by Transnet could cause the price of fuel, already climbing to new record high levels, to rocket. A steadily weakening rand, currently rising to above the R8 mark, offsets gains of a lower oil price. With the local economy shrinking, the price of petrol looks set to increase by around 39 cents a litre next week.
If the National Energy Regulator of South Africa approves an application by fuel retailers to increase profit margins by 15 cents a litre, the hike could top 55 cents a litre. The likely hike will push the petrol price to a new record high.
The looming hike has left motorists fuming
According to Econometrix economist Tony Twine, should the proposed increase be effected, it surely will take the country’s petrol price to record highs. With a possible 83% pipeline tariff increase for Transnet next year, motorists and consumers could find things getting harder in months to come.
No comments:
Post a Comment