Massive petrol price increase coming – TopAuto
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Tuesday / 19 October 2021
HomeNewsMassive petrol price increase coming

Massive petrol price increase coming

Month-end fuel price data released by the Central Energy Fund is pointing to a large increase in prices of all fuel types in South Africa in August.

Petrol prices have been hit the hardest, with these showing an under-recovery of between 76 cents and 80 cents per litre.

Both diesel and illuminating paraffin are showing an under-recovery of around 47 cents per litre, according to a report by BusinessTech.

The expected price increases for all fuel types in South Africa are detailed below:

  • Petrol 93 – Increase of 76 cents per litre
  • Petrol 95 – Increase of 80 cents per litre
  • Diesel 0.05% – Increase of 47 cents per litre
  • Diesel 0.005% – Increase of 46 cents per litre
  • Illuminating Paraffin – Increase of 47 cents per litre

While these prices are not the official adjustments that will take effect on the first Wednesday of August, they provide a good picture of what to expect – as the entire month’s data has now been considered.

The official fuel price adjustments will be calculated by the Department of Mineral Resources and Energy, and gazetted before 4 August.

During July, petrol prices were mostly affected by the changes in international oil prices – which contributed to a 47 cents per litre under-recovery.

This was exacerbated by the weakening rand/US dollar exchange rate, which contributed another 33 cents per litre under-recovery, said the report.

For diesel, due to the differences in the refinement process and product prices, the weaker rand is the bigger contributor to expected increases.

The international oil price then contributed to a 15 cent per litre under-recovery for this fuel type.

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