The lower cost of petrol was short-lived, and motorists can expect a sharp rise in price soon. The Central Energy Fund (CEF) released mid-month figures that estimate a R1.49 per litre and R1.59 per litre rise in price for 93 and 95 respectively. A R1.48 per litre increase is predicted for diesel, and the price of Illuminating paraffin is estimated to rise by R1.94. These stats are subject to change.
The Automobile Association (AA) explained that the country’s petrol price will slowly return to pre-COVID prices as international oil prices rise.
“Oil is continuing its march back towards its previous levels in the first half of June, setting the scene for further hefty fuel price hikes going into July. The basic fuel price used in South Africa has jumped by eight percent since 1 June, with higher peaks, as international oil prices claw back some of the massive declines of the past four months,” the AA reports.
“With world demand expected to continue to increase, South Africans must likewise expect the fuel price to gradually edge back towards pre-Covid-19 levels.”
In late May, South Africa implemented diesel rationing due to the unexpected rise in demand for fuel. More than half of the country’s refining capacity had been shut down in line with lockdown regulations.
However, the South African Petroleum Industry Association (SAPIA) have since announced that the situation has begun improving.
“SAPIA members are building stock since the lowering of the Lockdown Alert Levels for COVID-19 and the recent price changes. Product imports have arrived at the port of Durban and pipeline deliveries have resumed,” said SAPIA in a statement.
“These products will reach the inland market within 7 to 14 days which is the lead time from Durban to Gauteng by pipeline. During this time, supply is expected to stabilize across the country as more refineries are online and producing fuel.”
While ths situation is slowly improving, the Democratic Alliance (DA) is calling on Minister of Mineral Resources and Energy, Gwede Mantashe to provide further clarity. In a statement released Sunday [June 14], the DA explained that Gauteng has been the most affected by ongoing diesel shortages, “with numerous wholesalers and retailers reportedly ‘dry’, and others experiencing difficulty in obtaining resupply”.
They called on the minister to clarify the country’s current status.
“It is clear that the situation with regard to diesel availability is worsening, despite industry and Government protestations to the contrary and in spite of promises that normal supply would be restored by the end of May. Mantashe and the heads of South Africa’s refineries must immediately brief the country on what the true status is, and when we can really expect to have normal stock levels again,” said the DA.