South African drivers have been warned to prepare for a hike in the price of fuel. This comes as the Central Energy Fund (CEF) released its unaudited month-end data.
The fuel price hike is influenced by the international price of crude oil, and it seems there is a steep hike in store.
“The rebound in international oil prices has been as remarkable as their fall earlier in the year. The basic fuel price for petrol and diesel in South Africa jumped from around R3 a litre on May 1 to nearly R6 a litre by June 25,” the Automobile Association (AA) said, commenting of the CEF’s data.
According to the AA, the price of petrol is predicted to increase by R1.73 per litre, and diesel by R1.74 per litre. The price of illuminating paraffin is expected to hike up by R2.14.
“This will be an especially huge blow to citizens who use paraffin for cooking, lighting, and especially heating during Winter,” the AA added.
The rand has gained approximately 34 cents against the US dollar during the month of June but was still approximately R2.50 weaker to the dollar than before the coronavirus pandemic crisis landed and the country’s sovereign debt rating was downgraded.
“We cannot overstate the effect that the rand’s collapse is currently having on fuel users: if the rand had remained at its pre-Covid-19 levels, fuel users would likely be seeing a reduction in fuel prices in the order of 75 cents a litre next month,” the AA said.
This is what the price of fuel may look like, determined by data from Government Energy:
|Fuel (Inland)||Petrol price for June Official||Petrol price for July (expected)|
|0.05% Diesel (wholesale)||R11.30||R13.04|
|0.005% Diesel (wholesale)||R11.38||R13.07|