Motorists can expect further pain at the petrol pumps next month, with the latest data from the Central Energy Fund (14 June) showing that South Africa is heading for its fourth consecutive petrol price hike in July.
Consumers have endured an miserable time at the pumps since higher levies and a weak economy hit prices in April. Since then, through May and June, the petrol price has increased by as much as 15% – up more than R2 per litre in three months.
This trend is expected to continue, with the latest data showing an under-recovery in the market of between 29 cents and 32 cents for petrol, and 28 cents and 30 cents for diesel.
If current market conditions continue in this way until the end of the month, this means prices will likely push through the R16 per litre level (for 95 octane) – a new record high.
Key contributing factors to the local fuel price is the performance of the rand versus leading currencies, as well as the international cost of petroleum.
According to the Central Energy Fund, movements in the exchange rate is currently the biggest contributing factor – but movements in global prices are also not favourable.
“Since the start of June, the rand has steadily weakened against the US dollar, with the average cost per dollar having climbed from around the R12.50 mark to nearly R13.00. Fortunately, international oil prices retreated over the same period, and have had a very small impact on the figures,” the Automobile Association said in a statement on Friday.
“With the volatility of oil markets over the last six weeks, an increase in the oil price cannot be ruled out in the short to medium term, and we once again advise all motorists to avoid unnecessary journeys, make use of carpooling, and practice economical driving techniques.”
The table below outlines what motorists can expect to pay, based on mid-month data.
This is what you can expect to pay:
|Fuel||June official||July expected|
|0.05% Diesel (wholesale)||R14.19||R14.49|