Yesterday world oil prices hit the $80 a barrel price. There are no clear explanations to this but many analysts believe that a big drop in crude inventories and a reported shutdown of nearly 200,000 barrels from Alaska’s North Slope - a fourth of the region’s total output - and a gathering storm in the Atlantic, are reasons for the increase in price.

Now here in South Africa, this rise in oil prices is in turn going to rise our petrol price again, this on the back of previous price reductions over the last 3 months. My guess is that the petrol price will rise agin in October by about 12 cents a litre for petrol and 15 cents a litre of diesel. Now if the price of fuel goes up in October and this is just before the festive season, consumers are going to feel the pinch as prices of commodities will rise slightly, not only due to the fact that it’s the festive season and consumers want to spend but also a rise in fuel prices tends to raise the prices of everything.

So after the joys of a petrol price drop in the beginning of the month, it looks like we will be back up there again in October.

Subscribe

Sign-up to receive the latest updates from TheRandToday.com direct to your mailbox

Loading ...