South Africa is racing towards a new, darker chapter in its petrol price crisis – with fuel costs set to increase by a staggering amount at the beginning of June. The latest forecasts are nothing short of a travesty.
The latest data from the Central Energy Fund (CEF) – the key institution which regulates the petrol price in South Africa – already has the value of petrol AND diesel on course for a rise of just under R2-per-litre. But, as if this wasn’t bad enough, there’s another factor compounding this…
The general fuel levy suspension is only in place for April-May 2022. That means when the petrol price is set for June, the R1.50 tax relief will be added BACK ON to the estimated costs. That will take out petrol price towards an increase of more than R3-per-litre.
These harrowing figures are being driven by the volatility of several international markets. For a start, the price of oil is once again pushing into record territory – and the Rand is performing dismally against major currencies, such as the US Dollar.
This combination is set to have a near-fatal impact of the fortunes of Mzansi’s motorists. Filling up at the pumps, with no further state intervention, will prove to be a tremendous challenge for working families as we head into winter.
According to the CEF’s most recent update, the 95 Grade of petrol is set to skyrocket by R3.31, once the fuel tax is fully reinstated. Meanwhile, 93 Grade will see an increase of R3.25. The cost of diesel could now rise by up to R3.46, ensuring that it remains the most expensive fuel in SA.
If we take the current petrol price and add these new estimates on, then we can see just how devastating the damage will be in June. Here are the predicted ‘rand-per-litre’ petrol and diesel figures, which will come into effect in a few weeks’ time: