Oil price hikes to stem inflation slump

A report from Motswedi Securities says that although inflation has eased off since late last year, the downward trend might be slowed as a result of resurging oil prices on the international market as well as the potential increase of administered prices, such as electricity tariffs. Crude oil prices on the international market have risen from $32 per barrel in December 2008 to around 71. The prices are threatening to rise further.

"Already here in Botswana, petrol prices have been reviewed by 56 thebe and 55 thebe for diesel in response to the rise in global oil prices. South Africa has also reviewed its pump prices for petrol by around R0.17 per litre. Alistair Darling, UK finance minister, has even warned that rising oil prices could hinder the recovery of global economies," says the report.