×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now
From Wednesday petrol and diesel will cost nearly R10 a litre more than a year ago. Picture: SUPPLIED
From Wednesday petrol and diesel will cost nearly R10 a litre more than a year ago. Picture: SUPPLIED

The misery for SA motorists will continue in July with fuel prices to reach new record levels on Wednesday.

The price of 93 octane petrol will rise by R2.37/l and 95 octane by R2.57/l,  with low sulphur 50ppm diesel to go up by R2.30/l and 500ppm by R2.31/l. Illuminating paraffin rises R2.21/l.

This new retail price of a litre of 93 petrol will be R26.31 and 95 will cost R26.74 inland, while the inland wholesale price of 500ppm diesel will be R25.40 and 50ppm diesel will cost R25.53. The prices are nearly R10/l more than a year ago and the department of minerals and energy attributes the hikes to average international product prices for fuel increasing during the period under review.

The rand appreciated against the US dollar from R15.94 to R15.76, preventing the hikes from being even worse, but the government's temporary reduction in the general fuel levy is being halved in July, which adds to the increases

Another big increase awaits cash-strapped motorists next month when the temporary reduction in the fuel levy expires.

On May 31 the ministers of finance and mineral resources and energy jointly announced an extension of the temporary reduction levy by 150c/l on both petrol and diesel until July 5 and thereafter adjusting the relief to 75 c/l from July 6. The temporary relief will be withdrawn from August 3.

The fuel levy in petrol and diesel respectively amounts to 319c/l and 305c/l.

The AA says while pressure is building on the government to formulate a solution to the rising fuel costs, short-term relief, while welcome, is not sustainable.

“We understand that government has little leeway in terms of international petroleum prices and the rand/US dollar exchange rate, which is why we have called, and will continue to press, for a review of the fuel price, an area where the government has control over the fuel price," says the AA

"There is a need to interrogate all the components of the fuel price, to determine whether all these components are still necessary in the existing formula, and to establish if the current calculations of these components are correct. The longer this review is not initiated, the longer the country will wait for lasting solutions,” it notes.

droppad@arena.africa

subscribe

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.

Commenting is subject to our house rules.