By Teetee Zwane AS the price of oil continues climbing up, analysts say this might lead to fuel prices shooting up substantially this year. Reuters reported that oil edged up towards $82 a barrel yesterday, posting its ninth straight day of gains, as a surprise cold snap in the key consuming regions of the United States and Europe boosted demand for heating fuel. It also reported that oil finished the year above $79 a barrel, climbing a whopping 78% in 2009 and notching the biggest annual gain in a decade. “This simply means in the medium to long term, consumers will have to pay more for a number of goods and services, especially if the price of oil continues to be driven up,” said a local economist. He said higher oil prices would eventually lead to an increase in other commodity prices including fuel, food and transport, which would subsequently have an effect on inflation and in turn on interest rates. “It’s some sort of recurring cycle. We just need to find a balance that sustains us in times of economic difficulties. Markets are volatile and fluctuate, so consumers need to be prepared through adopting the culture of saving, for instance because higher commodity prices reduce disposable income,” he added.

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