Oil price sparks fears of ‘unacceptable’ price hikes

ALAN PEAT THERE IS growing concern that the oil price hitting new record highs every day will push up the cost of fuel in SA, and therefore transport, to unacceptable levels. But just how much is the SA fuel price likely to go up with oil being priced as it is at over US$50 a barrel? It’s not going to be a catastrophic rise, according to Colin McClelland, director of the SA Petroleum Industry Association (Sapia) - at the same time dismissing press reports quoting another source, which he suggested is more publicity-seeking than accurate. “It will stabilise at about 20-cents a litre more for both petrol and diesel,” he said. Working on the expected SA under-return from figures for international oil product prices for October 11, McClelland calculated that the petrol price in SA should rise by 21c from its present level, and diesel by about 18-19c a litre. That, he reckoned, would see the petrol pump price (depending on where you are) at about R4.90 a litre, and the estimated price of diesel at about R4.50.