Big petrol price hike expected next month

Amid Covid-19 with all its challenges and payment holidays, the Automobile Association, in its commentary on unaudited mid-month fuel price data released by the Central Energy Fund, is predicting a fuel price hike for July.

Petrol can increase by about R1,59 a litre, diesel by R1,48, and illuminating paraffin by R1,94.

“The basic fuel price used in South Africa has jumped by eight per cent since June 1, with higher peaks, as international oil prices claw back some of the massive declines of the past four months,” the AA said.

“With world demand expected to continue to increase, South Africans must likewise expect the fuel price to gradually edge back towards pre-Covid-19 levels.”

The AA concluded: “Some pragmatism is needed. With fuel showing this kind of increase in just the first two weeks of June, the increase could be much heftier come month end. If this continues, it might not be long before the R4 a litre saving motorists enjoyed between February and April is erased. So, despite our optimism over a slow rebound for oil, we advise caution, especially with the rand currently trading around R3 higher to the dollar than before the Covid-19 crisis began”.

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