Yep, it’s the petrol pump stock photo of doom again… (Pixabay)
Yep, it’s the petrol pump stock photo of doom again… (Pixabay)
Despite falling global oil costs, petrol prices in South Africa will be on the rise again in July – as confirmed by the Department of Energy on Sunday.
Across the country, the average price is set to spike by 23 – 26 cents per litre for petrol, and 24 – 26 cents per litre for diesel. Illuminating paraffin is also set for an increase, jumping up by 30 cents.
What is the petrol price in South Africa for July?
With current average prices residing in the high fifteens, this latest record-breaking hike will see motorists further inland in Mzansi fork out R16.02 per litre when they fill their tanks up.
The department explained their reasons for the increase, which is in contrast to the crude oil price decline across the world. They state that a rise in petrol production itself is at the heart of the issues:
“The main reason for the lower crude oil prices is that the Organisation of Petroleum Exporting Countries (OPEC) and its allies agreed to increase production in order to retake market share from rivals and to calm prices to avoid blunting demand growth during their meeting on 22 June 2018.”
Why are petrol prices at record levels?
Had it not been for a reduction of crude oil costs this month, South Africa would have been staring down the barrel of an increase almost double of what has been forecast.
The AA explained on Thursday why we might have to count ourselves lucky:
“The average Rand/US dollar exchange rate used to calculate the basic fuel price has slipped in a virtually straight line since the start of June.
Fortunately, international oil prices have retreated at a similar rate, resulting in a fairly moderate fuel price increase outlook for July.”
With the economy already under pressure, it’s likely huge petrol hikes will only add to the financial strain, with ordinary citizens carrying the burden.
