Petrol price increases expected for July

The Central Energy Fund (CEF) has released the mid-month fuel price data which points to more hefty fuel-price increases across the board in July.

Petrol prices are expected to go up by a maximum of R2.03 per litre, whereas diesel prices are anticipated to grow by up to R1.28 per litre, reported BusinessTech.

These increases come despite the government’s extension of the tax holiday on fuels, which will see R1.50 per litre shaven off the General Fuel Levy for July and 75 cents per litre for August.

According to the CEF, the following fuel price adjustments are expected to take effect in South Africa next month:

• Petrol 93 – Increase of R1.86 per litre
• Petrol 95 –Increase of R2.03 per litre
• Diesel 0.05% – Increase of R1.28 per litre
• Diesel 0.005% – Increase of R1.28 per litre
• Illuminating Paraffin – Increase of R1.53 per litre

These expected price hikes are a result of rallies in international oil prices and a weakening local currency in June, but do not consider the whole month’s data including Slate Levy or retail margin changes.

The official adjustments that will come into effect in July will take into account the whole month’s data and could therefore look significantly different, said the CEF.

Government interventions

Fuel prices in South Africa have consistently hit record highs in 2022 due to several negative geopolitical and domestic influences.

In an attempt to curb the worst of the increases, the government introduced the tax holiday on fuels in April and in May it cut three cents per litre from the Basic Fuel Price.

Moreover, a further 10 cents per litre was removed for Petrol 95 in Gauteng by completely removing the demand-side management levy in this province.

However, these interventions have had little to no effect on stemming the rising fuel prices, and other organisations have called on the governing party to take more effective action.

The Democratic Alliance (DA) and Congress of South Africa Trade Unions (Cosatu) have stated that deregulation of fuel prices should be considered as a long-term option, whereas the Automobile Association (AA) has requested a full review of the country’s fuel price calculations.