June petrol price hike to be bigger than expected
Johannesburg - Following months of much-needed fuel price relief, the cost of filling up is set to increase from the first week of June and although the hikes won’t be big enough to cancel out the previous drops, they will be a bit steeper than previously predicted.
This is thanks to international oil prices that have continued to trade at higher levels than the previous months, although the stronger rand has helped to soften the blow slightly.
While mid-month data from the Central Energy Fund had pointed towards a petrol price increase of around 50 cents a litre, motorists are now looking at a price rise in the region of R1.15 if current trends persist until the end of this week.
This would bring the price of a litre of 95 Unleaded petrol up to R12.67 at the coast and R13.37 inland, where 93 ULP would now cost R13.17.
There’s also bad news on the diesel front – while a decrease of more than 50 cents had been predicted earlier in the month, customers are now looking at a price increase of around 15 cents.
While no fuel increase could ever be welcomed in these tough times, the good news is that, historically speaking, international oil prices are still relatively low, trading at around $36 a barrel at the time of writing.
However, steep South African taxes are preventing motorists from fully reaping the benefits of low oil prices, with the General Fuel Levy and Road Accident Fund Levy accounting for 50% of the petrol price at the coast and 48% inland, as the Automobile Association reported earlier this month.
That works out to R5.84 for every litre of petrol that goes into your tank.
“South Africa’s fuel price is comprised of many different elements, some of which make fuel in the country more expensive than that in neighbouring countries to which South Africa exports,” the AA said.