South African motorists could face steep fuel price increases in August if current trends persist until the end of this month. This is the scenario painted by the latest fuel price data released by the Central Energy Fund.
If international oil prices and the South African rand continue along their current trajectories, motorists could face a price increase of around 80 cents a litre for 95 unleaded petrol and around 77 cents a litre for 93 unleaded petrol. It looks to be a smaller, albeit still hefty, blow for diesel customers, with diesel looking likely to increase by around 40 to 50 cents a litre.
Once again, this could change between now and the end of this month, but if the above predictions ring true, motorists will pay a whopping R17,47 per litre for 95 unleaded petrol at the coast and R18,19 in the inland regions, where the cheaper 93 unleaded will retail for around R17,97.
The fuel price calculation is currently being battered on both sides, by a depreciating currency and stubbornly high international oil prices. In the first 13 days of July the South African rand averaged R14,28 to the US dollar, versus R13,90 for the month of July. At the time of writing the local currency was listed at R14,56, and Brent Crude oil was trading at $75,16.
Of course, annually increasing fuel taxes are another big contributor to the price equation and South Africans currently pay a hefty R6,11 in levies on every litre of fuel. Fill up a bakkie like the Toyota Hilux, and you’re looking at almost R460 in tax alone. This is why the Automobile Association recently called for an investigation to be conducted on the current pricing model for all grades of fuel.
“Increases to these taxes are announced by the Finance Minister in his annual Budget speech in February and come into effect in April. The AA has always raised concerns that increases hurt the country’s poorest citizens, particularly as many of these citizens rely on public transport; an increase to the levies inevitably results in an increase to public transport rates,” the AA said back in May.
