{"id":590618,"date":"2022-05-26T12:07:25","date_gmt":"2022-05-26T10:07:25","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=590618"},"modified":"2022-05-26T12:09:04","modified_gmt":"2022-05-26T10:09:04","slug":"south-africa-faces-16-petrol-price-jump-in-june","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/590618\/south-africa-faces-16-petrol-price-jump-in-june\/","title":{"rendered":"South Africa faces 16% petrol price jump in June"},"content":{"rendered":"

South Africans face record high petrol prices in June as a subsidy to help motorists counter the impact of high crude costs exacerbated by Russia\u2019s invasion of Ukraine comes to an end.<\/p>\n

With a weighting of almost 5% in South Africa\u2019s inflation basket, the expected jump in pump costs is likely to push the gauge above the central bank\u2019s\u00a0target range\u00a0and spur price hikes across the economy. The government reduced the levy on fuel by 40% in April and May, helping to keep a lid on prices.<\/p>\n

\u201cWe understand that it\u2019s because of the war between Ukraine and Russia, but we are going to also have to increase taxi fares and customers are going to start fighting us because we have been increasing prices for people who aren\u2019t getting anything from their jobs,\u201d said Dumisani Vilakazi, a minibus-taxi driver in Johannesburg.<\/p>\n

\"\"<\/a><\/p>\n

Absa economists estimated in a research note that gasoline prices could jump by a staggering 16% month-on-month should the R1.50 rand a litre reduction in the fuel levy not be extended.<\/p>\n

The Latest Central Energy Fund data show an average under-recovery on gasoline of about R2.40 per litre in May, pointing to an increase for that fuel of about 10%, before adding in the full levy.<\/p>\n

Mondli Gungubele, a minister in the presidency, referred questions at a post-cabinet meeting on Thursday on whether the levy waiver will be extended to the National Treasury.<\/p>\n

The government adjusts pump prices on the first Wednesday of each month after taking into account changes in oil prices, the currency, taxes and retailers\u2019 regulated margins. The price of 95-octane gasoline in Johannesburg, the commercial hub, is currently R21.84 a litre.<\/p>\n

\u201cThe current petrol price is already making us cry and now it\u2019s about to increase again,\u201d Michael Gumbi, an Uber driver, said. \u201cIf things keep going like this I\u2019m afraid we\u2019ll end up having to take back our cars.\u201d<\/p>\n

\n

Read: South Africa has run out of time as it faces R25\/litre petrol hike next week<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South Africans face record high petrol prices in June as a subsidy to help motorists counter the impact of high crude costs exacerbated by Russia\u2019s invasion of Ukraine comes to an end.<\/p>\n","protected":false},"author":10,"featured_media":274655,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[26],"class_list":["post-590618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/590618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=590618"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/590618\/revisions"}],"predecessor-version":[{"id":590628,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/590618\/revisions\/590628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/274655"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=590618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=590618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=590618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}