Petrol prices July

Photo: Unsplash

We’ve been pumped: Here’s why petrol prices will INCREASE in July

Any chance of our petrol prices decreasing in July has essentially just gone down the drain – but what’s behind this latest spike in costs?

Petrol prices July

Photo: Unsplash

After receiving some promising mid-month data, it now appears that petrol prices will instead endure a fairly substantial cost increase, making it a full house alongside soaring fees for diesel and illuminating paraffin respectively. Recent estimates predicted that some fuels would become cheap in July – but that is no longer the case.

Here’s how fuel costs will rise next month in South Africa

Figures from the Central Energy Fund (CEF) show how petrol prices, initially forecast to drop by six cents, are now likely to rise by up to 29 cents per litre for certain grades. Diesel is also set to experience a cost increase of 37 cents p/l.

These costs will now push South Africa back into unfancied territory. Earlier this year, fuel value hit a record high in Mzansi, with petrol going for over R17.40p/l in Autumn. A couple of steadier months have bought this total down a bit, but it now seems that the average price for petrol will settle between R17.20 to R17.30 by the middle of next week.

Diesel is also on the march, with late-month modelling showing that consumers can expect to pay just over R15 for every litre they put in their tanks. This would be the highest diesel price in South Africa since June 2019.

Why are petrol prices increasing in July?

Well, we can’t actually blame the Rand this time. On the contrary, ZAR is performing relatively well against the US Dollar and other international markets. Sadly, we’re going to have to chalk this one down to a last-minute surge in oil prices. The cost of crude has skyrocketed in the past few days, and that’s bad news for South Africa.

Our country is heavily reliant on oil exports, so if international prices go up, so do our domestic ones. Therefore, Mzansi is absolutely banged to rights on the current fuel price projections. Eish, it never rains, it just simply pours here…