Bets are on for petrol prices to rise again in July for South Africa. At this point, it’s become less of a shock, and more of an expectancy with many of us asking “so how bad is it this time?”.
Predictions are suspecting that a R1.75 per litre increase could be in place from 6 July according to Outa (The organisation Undoing Tax Abuse). The group has also pushed for the government to extend the R1.50 general fuel levy cut, which was set to ease the blow under the hand of Finance minister, Enoch Godongwana.
Although some singing praises were underway due to the general fuel levy’s grace, it has been made clear that it isn’t a permanent solution.
“The fuel levy reprieve of R1.50 per litre has been in place for April, May and June. Should the Minister of Finance Enoch Godongwana reduce this to a reprieve of 75c per litre from 6 July to 2 August, as planned, we can expect a petrol price of around R2.50 in July, thereby pushing the price of 95 octane inland from R24.17 per litre to around R26.70,” Outa expressed.
“The price of petrol is subjected to taxation or levies in virtually every country, and in South Africa, the general fuel levy is the fourth largest tax source for Treasury (after PAYE, VAT and company tax), generating around R89 billion per annum for the fiscus,” it added.
Outa says that the government shouldn’t reduce the fuel levy to 75c when July comes round, but rather wait until some improvements and stability emerge.
Some think that the petrol scene could get even more hectic (to put it politely). Petrol may possibly see a hike to R1.92 a litre in July, according to Investec chief economist Annabel Bishop, as per BusinessTech.
What is the future of petrol in SA looking like? Looking at our fuel track record and geopolitical factors, some experts speculate that the price of fuel could rise to a striking R40 per litre, largely due to wheat price increases at 100%.
Suddenly our bikes are looking far more attractive than ever.
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