South African motorists will face yet another fuel price hike in July, thanks to soaring international oil prices and an unstable rand.
Judging by the most recent late month data released by the Central Energy Fund, it appears likely that petrol prices will rise by around 25 cents a litre, while diesel is looking set to increase by around 40 cents. You can give or take a few cents from those projections, however, as there are still a few days left before the end of the month and July’s fuel prices have yet to be finalised.
A 25 cent increase would push the price of 95 Unleaded Petrol up to R16,66 at the coast and R17,38 in the inland regions, where 93 Unleaded will now cost around R17,16.
“International petroleum prices have climbed throughout June. Even some marginal gains on the rand have not been enough to counter the rise,” the Automobile Association said. “On average, the rand was positive against the US dollar during June, but the daily exchange rate has sagged alarmingly since mid-month, weakening from around R13.75 to the dollar to nearly R14.30”.
At the time of writing, Brent Crude oil was trading at $74,68, up from around $68 in late May.
Also read: How to use less fuel: Smarter driving WILL save you money
The AA recently raised concerns about the hefty taxes added to the fuel price in South Africa. These levies, which increase every April following the Budget Speech, currently make up 37 percent of the petrol price at the coast and 36 percent of the cost inland. Consider that a litre of petrol costs just R7,15 when it arrives at the harbour.
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