Crude oil price hits lifetime high of $130

Robert Laing

Robert Laing

Crude oil futures bust the $130 a barrel barrier for the first time yesterday.

This means June's petrol price hike is likely to be near this month's 55c a litre increase.

The "average under recovery" used by state owned enterprise Central Energy Fund to calculate the government regulated retail petrol price currently stands at 27c a litre, and there is still over a week to go before next month's price is fixed.

Econometrix Treasury Management said: "Early in the month, ETM forecast the potential for another petrol price increase of 30c or a little more.

"This now seems to have been too optimistic with the oil price rising more rapidly than anticipated.

"It now appears likely that another petrol price increase closer to 45c to 50c is on the cards in June which will boost the inflation numbers beyond current expectations."

If petrol goes up 50c a litre next month, it will take inland 93octane to R9,83 and coastal 95octane to R9,72 a litre, which is 39percent higher than June last year.

The daily over or under recovery data found at shows diesel prices continue to outpace petrol. The current under recovery for low sulphur diesel is 44c and standard diesel 45c a litre.

The government's fuel price fixing regime sets the petrol price all garages must charge by law on the Friday preceding the first Wednesday of a month when the new price takes effect.