The price of petrol could increase by 25 cents a litre next week on Wednesday due to the rise in the international price of oil since November 26, the latest calculations issued by the state-owned Central Energy Fund released on Wednesday showed.
From December 1, the price of petrol at the coast was set at R8.21 a litre and the inland price was established at R8.45 a litre.
The next change to the local petrol prices will be made on Wednesday, January 5, and will be based on the average over or under recovery in the petrol price from November 26 to December 30.
On Wednesday morning, oil prices hovered above $91 a barrel ahead of reports that may show a third week of US crude inventory reductions, a sign demand is improving, Sapa-AP reports.
Benchmark oil for February delivery rose 1 cent to $91.50 a barrel in electronic trading on the New York Mercantile Exchange.
Crude supplies likely fell 3.2 million barrels last week, according to analysts surveyed by Platts, the energy information arm of McGraw-Hill. The American Petroleum Institute is scheduled to announce its inventory numbers later on Wednesday while the Energy Department's Energy Information Administration reports its weekly supply data on Thursday.
Crude inventories have fallen 15 million barrels the previous two weeks, according to the EIA.
Oil prices have rallied in the fourth quarter of 2010 as crude traders have followed global stock market gains and a weaker US dollar, which makes commodities cheaper for investors with other currencies. - IOL Business Writer