Petrol prices are now surging towards R30-per-litre in South Africa – Photo: Stock Image / Pixabay
Petrol prices are now surging towards R30-per-litre in South Africa – Photo: Stock Image / Pixabay
The mere act of surviving in South Africa feels more like an extreme sport with each passing day. As living costs soaring across the board, it perhaps comes as no surprise that we are bracing for yet another petrol price hike in July, with some experts forecasting a R2.50-per-litre increase.
Petrol price increase for July: How are we meant to dig any deeper?
The crisis is being driven by Russia’s senseless invasion of Ukraine earlier this year, disrupting global supply chains in the same way COVID-19 lockdowns did previously. It’s also had an entirely adverse impact of the value of oil, which climbed by another 7% this month.
Add to that a weakened Rand, and South Africa is left to chow-down on a recipe for disaster. The financial boffins at the Organisation for Undoing Tax Abuse (OUTA) are painfully aware that the next petrol price hike will push many South Africans towards the brink.
Can a R2.50-per-litre hike be avoided next month?
That’s why they are now lobbying the government to extend their R1.50 fuel levy suspension for at least the next month. In July, this is slated to come down to 75 cents instead, piling more pressure on the average motorist in Mzansi.
It costs the government almost R3 billion a month to shave R1.50 off the fuel levy, but those of us who don’t have money to burn cannot put up with these spiralling costs for much longer. Something has got to give, and any move that increases the burden on the taxpayer could be disastrous.
Likely petrol price for July 2022 revealed
In a statement issued on Monday, OUTA predicts that we’re looking at R2.50-per-litre rise for our petrol price in July. By next week, some motorists could be paying almost R27-per-litre just to fill-up their tanks. These figures are almost beyond comprehension. But alas, they’re our reality now…
“The fuel levy reprieve of R1.50 per litre has been in place for April, May and June. Should the Minister of Finance Enoch Godongwana reduce this to a reprieve of 75c per litre from next month as planned, we can expect a petrol price of around R2.50 in July.”
“This will, therefore, push the price of petrol 95 octane inland from R24.17 per litre to around R26.70.”
“The Minister should not reduce the fuel levy reprieve to 75c in July, but wait until the geopolitical factors, combined with an improvement in the rand exchange rate, are able to bring about significant reduction to the price of petrol.”
OUTA statement
