The rising petrol price has driven inflation forecasts higher, with some economists expecting it to peak above 7% in June
30 May 2022 - 15:10
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
The price of 95-octane petrol in Johannesburg is now R21.84 per litre. Stock photo. Picture: 123RF/VLADYSLAV STAROZHYLOV
The SA Petroleum Industry Association (Sapia) expects the government to this week announce whether the short-term relief measures to alleviate fuel-price increases will be made permanent as motorists brace for a possible R4/l increase in petrol prices in June.
“We hear there are discussions, but the official version is that there is not going to be an extension,” Sapia executive director Avhapfani Tshifularo said on Monday. “That is subject to an announcement which should come later today [Monday] or tomorrow.”
In April and May, the government cut the general fuel levy by R1.50/l as part of a “two-phase approach” to shield motorists from rising fuel costs. The measures were funded by the liquidation of a portion of the strategic crude oil reserves.
Sapia said it had been engaging in discussions with the government on the second phase.
Sapia head of projects Kevin Baart said given the steep fuel prices projected in future, “unfortunately we will have to bite the bullet”.
“There is very little the government can do, particularly around the edges, which may see one or two cents a litre being chopped off the price.”
The rising petrol price has driven inflation forecasts higher, with some economists expecting it to peak above 7% in June.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SA braces for more pain at the fuel pump
The rising petrol price has driven inflation forecasts higher, with some economists expecting it to peak above 7% in June
The SA Petroleum Industry Association (Sapia) expects the government to this week announce whether the short-term relief measures to alleviate fuel-price increases will be made permanent as motorists brace for a possible R4/l increase in petrol prices in June.
“We hear there are discussions, but the official version is that there is not going to be an extension,” Sapia executive director Avhapfani Tshifularo said on Monday. “That is subject to an announcement which should come later today [Monday] or tomorrow.”
In April and May, the government cut the general fuel levy by R1.50/l as part of a “two-phase approach” to shield motorists from rising fuel costs. The measures were funded by the liquidation of a portion of the strategic crude oil reserves.
Sapia said it had been engaging in discussions with the government on the second phase.
Sapia head of projects Kevin Baart said given the steep fuel prices projected in future, “unfortunately we will have to bite the bullet”.
“There is very little the government can do, particularly around the edges, which may see one or two cents a litre being chopped off the price.”
The rising petrol price has driven inflation forecasts higher, with some economists expecting it to peak above 7% in June.
TimesLIVE
Something must be done, says Godongwana ahead of news on fuel price relief
CARTOON: SA’s fuel price tsunami
Prepare for huge price hikes in 2022, Tiger Brands CEO warns
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Something must be done, says Godongwana ahead of news on fuel price relief
Prepare for huge price hikes in 2022, Tiger Brands CEO warns
How the Ukraine war has affected Africa’s most vulnerable
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.