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Picture: BLOOMBERG/DAVID PAUL MORRIS
Picture: BLOOMBERG/DAVID PAUL MORRIS

SA motorists could be facing another hefty fuel hike price in July.

The latest unaudited data released by the Central Energy Fund shows an under-recovery that would see the price of 95 unleaded rise about R2/l and 93 unleaded about R1.85/l. At the time of writing, both grades of diesel (50ppm and 500ppm) look set to spike about R1.30/l.

These sharp increases can be attributed to a strong dollar, weakening rand, bullish global oil prices and the continued conflict in Ukraine. 

The government’s temporary reduction in the general fuel levy is also set to be halved on July 6, meaning local motorists will be hit by a further 75c/l increase no matter what happens on the international front.

The price per litre of 95 unleaded is a record R24.17 inland and R23.42 at the coast. A litre of 93 unleaded (only available inland) will set you back R23.94.

The wholesale price per litre of 50ppm diesel is R23.22 inland and R22.63 at the coast, and 500ppm diesel is R23.09 inland and R22.47 at the coast. 

It costs about R300 more to fill a Volkswagen Polo Vivo than it did one year ago, and nearly R700 more to fill a Toyota Hilux diesel bakkie.

The cost of running a car is increasingly eating into consumers’ disposable incomes, leading to calls for the government to reduce the taxes that make up more than 30% of fuel prices.

There have also been calls to deregulate the retail fuel industry, allowing retailers to set their own margins and compete on price. However, the department of mineral resources and energy says deregulation will happen over time and will come with restrictions.

Responding to concerns raised by the retail fuel industry during a recent conference in Johannesburg, the deputy director-general for minerals and petroleum regulations at the department, Tseliso Maqubela, said the timing was not right to consider wide-scale deregulation of the industry. 

Maqubela said record fuel prices in SA were not because of levies and taxes but were due to the high price of oil, which had risen to about $120 a barrel, and the outlook doesn’t bode well for lower oil prices.

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