South African petrol prices may rise slightly next week amid global oil fluctuations

AS THE global oil market continues to exhibit minor fluctuations, South African drivers may face a slight increase in petrol prices next week, according to experts.

- YOGASHEN PILLAY

EXPERTS say a slight rise in global oil prices is not a concern for the petrol price.

(NEWSPRESS)

The Brent crude oil price has recently stabilised around $66.54 (R1 144) per barrel, raising discussions about the potential effects on the local petrol market.

Professor Waldo Krugell of North-West University noted that Brent crude was trading within its recent range, saying that while concerns about sanctions on Russia persist, oversupply fears continue to offset them.

Krugell added that the key factor for us will be the rand-dollar exchange rate over the next week.

“On Friday's data, there is an under-recovery of 2 cents to 10 cents on petrol, but if the rand stays strong, the fuel price may end up virtually unchanged,” he said.

Old Mutual Group chief economist, Johann Els, pointed out that oil prices have eased since early August, when Brent traded near $70 per barrel.