Cape Town – Petrol prices in South Africa have experienced a slight over-recovery as of the first week of July.
According to BusinessTech, data from the Central Energy Fund indicates a potential reduction of around 11 to 13 cents per litre for petrol, while diesel prices are facing a potential increase of between 16 and 31 cents per litre.
This comes despite the rand/dollar exchange rate being relatively strong at R18.12 to the dollar.
However, global oil prices have continued to rise, currently at around $86 a barrel. The Central Energy Fund data reveals the following expected changes:
- Petrol 93: decrease of 11 cents per litre
- Petrol 95: decrease of 13 cents per litre
- Diesel 0.05% (wholesale): increase of 16 cents per litre
- Diesel 0.005% (wholesale): increase of 31 cents per litre
- Illuminating paraffin: increase of 25 cents per litre
The rise in oil prices is partly due to a storm system, Beryl, which hit the US mainland, causing significant power outages in Houston, Texas. Additionally, OPEC+ supply cuts and expectations of lower US interest rates have tightened the market, the report said.
A report by The Citizen has also highlighted the persistent burden of high petrol and diesel prices on South African consumers despite recent minor price cuts.
Government taxes and levies on fuel, including the General Fuel Levy and Road Accident Fund (RAF) levy, have steadily increased since 2021, contributing significantly to the overall cost, the report said.
These levies serve as a substantial revenue stream for the government, totaling R6.40 per litre as of May 2024.
Concerns have been raised about delays in reviewing the country’s fuel pricing methodology, exacerbated by recent changes in ministerial responsibilities under the Government of National Unity.
Stakeholders, including the Motor Industry Staff Association (Misa), argue that the review is crucial to mitigate the economic impact on households and industries, such as the retail motor sector, which has seen a decline in new vehicle sales amid economic pressures, said the report.
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Compiled by Betha Madhomu
