Petrol likely to rise more than 30c a litre in July
Almost all of the increase is due to rand weakness, the AA has said
Petrol prices are likely to rise another 32c a litre in July, the AA says. Diesel is estimated to rise 30c a litre and illuminating paraffin 22c.
The AA’s information was based on unaudited mid-month fuel data released by the Central Energy Fund (CEF).
Almost all of the increase is due to rand weakness and the picture would have looked even worse if international oil prices had not come down over the past two weeks, it said.
The rand has weakened 5.8% to the dollar in June, and 8% against the dollar in 2018. It started the year at R12.3722/$ and was trading at R13.4273 on Friday afternoon.
Brent crude has risen 13% in 2018, from $66.6 a barrel to $75.33 a barrel on Friday. It was, however, off the annual high of $80.42 reached on May 22.
Fuel levies on petrol and diesel announced in the 2018 Budget came into effect in April, and amounted to 22c/l and 30c/l, respectively.
The Road Accident Fund Levy in the price structure of petrol and diesel amounted to 193c/l, the Department of Energy stated at the time.