LEONARD NEILL MASSIVE HIKES in the bunker prices of fuel, gas oil and diesel at South African harbours during the past week have prompted fears of increased tariffs if the upward swing continues. Fuel in Durban jumped US$17 per metric ton from $166 to $188, the biggest move the market has witnessed since the dramatic drop in prices experienced in the May-June period last year. May 2003 started with prices at around $185, but these plunged to $160 a month later. They rose again to around $180 in July and August but then dropped back to the $160 level where they remained until February this year when they reached $175. Fuel in Cape Town moved To page 16 From page 1 up $6 per metric ton during the same week. Gas oil in the port, however, jumped from the previous week’s $330 to last Friday’s $359. Durban showed a $20 increase during the same week in both diesel (now $346) and gas oil (now $356). Local suppliers were then satisfied that the fuel index would level out between $165 and $170, but last week’s upward spiral has caused concern in the industry. While local supplies are sufficient in both Cape Town and Durban, suppliers say prices are dictated by Singapore where the price of all three commodities has increased dramatically. There are now fears that the upswing will continue in line with international oil prices which have rocketed in the past fortnight from a around $30 per barrel to a new high of $38.4 at the end of last week, threatening to hit the $40 mark. South African petroleum prices, already at an all time high, are likely to top R5 a litre for road transport should this happen. In the event of further price rises, higher freight tariffs and further pressure on inflation is the likely outcome.
