Stronger rand shields SA from pain of escalating oil price

SA truckers have had a relatively easy time ALAN PEAT ALTHOUGH THE international oil price has hit near record levels, this country has fared comparatively well in local fuel prices - protected by the strengthening of the rand, according to Colin McClelland, director of the SA Petroleum Industry Association (Sapia). At the time when the rand was 10 to the US dollar, oil was US$25 per barrel, he told FTW - converting to the local currency at R250/barrel. Now that it’s R6.6/US$1, and the oil price is sitting at around US$40, that converts to R264/b - only a 5.6% overall increase in the oil price in rand terms. And, looking at the wholesale price of standard diesel in Gauteng at May 5 being 367.20-cents a litre, the pain of the increased oil price can be eased by the fact that it was 393-c/l in November 2002. Also, in April last year, it was 391.90-c/l - but dropped back to 298.90-c/l as soon as the Iraqi war was over. Another attractive comparison was the price of diesel being 328.95-c/l in January 2001 - but actually over 3c lower this January, at 325.50-c/l. A situation which has meant that SA truckers have had a relatively easy time with local fuel prices, according to McClelland.