Fuel prices are expected to rise further in October due to the sharp rise in crude oil price, says independent agricultural economist Fanie Brink.
According to the latest information from the Department of Energy announced on Tuesday morning, he said, the price of gasoline 93 (ULP and LRP) in Gauteng on Wednesday, October 4, 2017 could possibly be 26.3 cents per litre and the price of diesel with a 0.005% sulphur content might rise by 37.8 cents per litre.
“The average daily Brent crude oil price has increased from $52.34 to $59.22 a barrel over the past month, the highest level since June 2015.
This increase is supported by a threat of Turkey to cut the crude oil being transported by a pipeline from Iraq to the outside world. Turkey is opposed to the possible independence of the Kurdistan region in Iraq,” he said in a statement.
Brink said Hurricane Harvey also caused the USA to close almost 25% of its refining capacity, while the rough sea caused by Hurricane Maria had also delayed the transport of crude oil along the North Atlantic coast.