The pressure on SA’s embattled consumers continues, with a massive fuel-price increase expected to be announced on Friday due to a surge in the price of Brent crude oil and rand weakness. This will in all likelihood push the cost of unleaded petrol towards R16 a litre, but analysts say it is not all doom and gloom. In the long term, oil prices should ease from recent multiyear highs as major producers Saudi Arabia, the US and Russia ramp up production. Expectations are for an increase in the fuel price of between 70c and 85c, adding to the up to 72c levied at the beginning of May. "The combination of a weaker exchange rate in May and higher global petroleum prices means that there is currently an 82c per litre underrecovery, which is likely to translate into a similarly sized petrol price increase early next month" said Old Mutual Multi-Managers chief investment strategist Dave Mohr. Petrol inflation Petrol inflation was reported at 9% in April, and May’s number would be similar. Ju...
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