The latest fuel price data released by the Central Energy Fund points to large petrol price increases in July 2021.
This is according to a report by BusinessTech, which examined the data.
The data shows an under-recovery in prices for all fuel types, leading to significant price increases expected across the board.
The expected fuel price adjustments for South Africa for July are as follows:
- Petrol 95 – increase of 17 cents per litre
- Petrol 93 – increase of 29 cents per litre
- Diesel 0.05% – increase of 37 cents per litre
- Diesel 0.005% – increase of 36 cents per litre
- Illuminating Paraffin – increase of 31 cents per litre
The report notes that the main drivers behind the changes in fuel prices are the international oil price and the SA rand-US dollar exchange rate.
Oil prices are trading at a three-year high, around $75 per barrel, which is up from previous highs seen in June.
Prices are driven globally by economies getting back to work and vaccination programmes rolling out, according to the BusinessTech report.
The rand has also lost around 3% of its value against the US dollar, after it reached levels last seen in February 2019.
The currency will also suffer continued pressure due to the renewed Covid-19 level 4 lockdown regulations in South Africa.
While the relatively strong local currency still contributed to lowering overall fuel prices, the positive effects were not enough to offset the large increase created by the international oil price.
Below are the expected inland fuel prices for July 2021, based on the latest fuel price data released by the Central Energy Fund:
- Petrol 95 – R17.30
- Petrol 93 – R17.20
- Diesel 0.05% (wholesale) – R15.03
- Diesel 0.005% (wholesale) – R15.07
- Illuminating Paraffin – R9.08
The official fuel prices are calculated and put in place by the Department of Mineral Resources and Energy on the first Wednesday of each month, which falls on 7 July.
The final adjustments will be gazetted before then.