News / National
Petrol expected to increase by R2 in South Africa
15 Jun 2022 at 09:38hrs | Views
Mid-month data from the Central Energy Fund points to further fuel price pain for diesel and petrol vehicle owners in July.
The data, which serves as a snapshot of market conditions as of 14 June 2022, shows that the petrol price could increase by as much as R2.03 per litre next month, while diesel is showing an under-recovery of R1.28.
The mid-month snapshot is as follows:
- Petrol 95: under-recovery/increase of 203 cents per litre;
- Petrol 93: under-recovery/increase of 186 cents per litre;
- Diesel 0.05%: under-recovery/increase of 128 cents per litre;
- Diesel 0.005%: under-recovery/increase of 128 cents per litre;
- Illuminating Paraffin: under-recovery/increase of 153 cents per litre.
The Department of Energy has stressed that the daily snapshots are not predictive and do not cover other potential changes like slate levy adjustments or retail margin changes, which are determined by the department at the end of the month, taking all variables into account.
The DoE makes adjustments based on a review of the entire period. Furthermore, the outlook can change significantly before month-end.
The steep price increases forecast for July comes despite the government extending its fuel price interventions for a further two months. Fuel prices in July will see R1.50 kept off the general fuel levy. In August, this will be reduced to 75 cents per litre as the other 75 cents is added back.
Motorists have had to grapple with sharply rising fuel prices since the beginning of the year. Fuel prices have increased some 20% since January, and over 40% year-on-year.
Aside from the temporary relief provided by removing part of the general fuel levy, the government's other interventions have been lacklustre. The DoE has only managed to reduce the basic fuel price by three cents per litre – with an additional 10 cents per litre removed for Petrol 95 in Gauteng by scrapping a demand-side management levy.
Fuel prices are affected by two main components – the rand/dollar exchange rate and changes to international petroleum product costs, primarily driven by oil prices.
The data, which serves as a snapshot of market conditions as of 14 June 2022, shows that the petrol price could increase by as much as R2.03 per litre next month, while diesel is showing an under-recovery of R1.28.
The mid-month snapshot is as follows:
- Petrol 95: under-recovery/increase of 203 cents per litre;
- Petrol 93: under-recovery/increase of 186 cents per litre;
- Diesel 0.05%: under-recovery/increase of 128 cents per litre;
- Diesel 0.005%: under-recovery/increase of 128 cents per litre;
- Illuminating Paraffin: under-recovery/increase of 153 cents per litre.
The Department of Energy has stressed that the daily snapshots are not predictive and do not cover other potential changes like slate levy adjustments or retail margin changes, which are determined by the department at the end of the month, taking all variables into account.
The DoE makes adjustments based on a review of the entire period. Furthermore, the outlook can change significantly before month-end.
The steep price increases forecast for July comes despite the government extending its fuel price interventions for a further two months. Fuel prices in July will see R1.50 kept off the general fuel levy. In August, this will be reduced to 75 cents per litre as the other 75 cents is added back.
Motorists have had to grapple with sharply rising fuel prices since the beginning of the year. Fuel prices have increased some 20% since January, and over 40% year-on-year.
Aside from the temporary relief provided by removing part of the general fuel levy, the government's other interventions have been lacklustre. The DoE has only managed to reduce the basic fuel price by three cents per litre – with an additional 10 cents per litre removed for Petrol 95 in Gauteng by scrapping a demand-side management levy.
Fuel prices are affected by two main components – the rand/dollar exchange rate and changes to international petroleum product costs, primarily driven by oil prices.
Source - businesstech
