20/09/2000 10:00 - (SA) Fuel prices to climb again

Johannesburg  South African motorists could be paying more for their fuel from October 4 because of strong international petroleum prices and a fresh slide in the rand to record lows against the dollar.

Higher prices for dollar-denominated imported fuel and the rand's two percent slide against the US unit this week suggest that petrol could be increased by five cents or 1.4% a litre, an official at the Central Energy Fund told Reuters.

Diesel may also rise by four cents a litre from early next month, he said. Petrol in the main Gauteng market currently retails at 366c a litre.

Higher fuel costs are expected to fan domestic inflationary pressure. Retail pump prices have already risen by 25% since the start of this year when petrol sold at 292c.

The consumer price index surged by 6.8% in the year to August after rising 5.9% in July, boosted mainly by a 34% increase in domestic fuel prices during that period, the country's statistics body said on Tuesday.

In a quarterly bulletin also released on Tuesday, the Reserve Bank of South Africa said inflation pressures generated by steep global oil prices should be seen as temporary and domestic fundamentals augured well for the country's price outlook.

The Fund will make its monthly announcement on September 29. The price changes will come into effect October 4.

Final prices are also expected to reflect the fall in the rand which hit a record low against the dollar on Tuesday of 7.3270.

South Africa is dependent on crude imports from Opec states Saudi Arabia, Iran and Nigeria. Its synthetic fuel industry accounts for up to a third of all automotive fuel sold in the country.

http://news.24.com/News24/Finance/Markets/0,1466,2-8-21_914361,00.html

-- Martin Thompson (mthom1927@aol.com), September 20, 2000