By Annisa Essack
29:06:2021

As June 2021 comes to an end, the Central Energy Fund has released its latest fuel price data, showing a significant petrol price increase on the horizon.

The data revealed an under-recovery in prices for all fuel types has led to a massive increase across the board.

The increase comes from the SA Rand-US Dollar exchange rate changes and the international oil price. According to a report by BusinessTech, prices are driven globally by economies returning to work and vaccination programmes being rolling out.

At present, oil is trading at a three-year-high, around $75 per barrel, up from previous highs seen in June. The rand has also lost about 3% of its value against the US dollar after it reached levels last seen in February 2019. Analysts say that the currency will also suffer continued pressure due to the renewed Covid-19 level 4 lockdown regulations in South Africa. And although a relatively local solid currency contributes to lowering the overall fuel prices, the positive effects were not enough to offset the large increase created by the international oil price.

The expected fuel price adjustments for South Africa for July are as follows:

• Petrol 95 – an increase of 17 cents per litre
• Petrol 93 – an increase of 29 cents per litre
• Diesel 0.05% – increase of 37 cents per litre
• Diesel 0.005% – increase of 36 cents per litre
• Illuminating Paraffin – an increase of 31 cents per litre

Below are the expected inland fuel prices for July 2021, based on the latest fuel price data released by the Central Energy Fund:

• Petrol 95 – 30
• Petrol 93 – 20
• Diesel 0.05% (wholesale) – 03
• Diesel 0.005% (wholesale) – 07
• Illuminating Paraffin – 08

The official prices will be confirmed by Wednesday, 7 July. They are calculated and implemented by the Department of Mineral Resources and Energy on the first Wednesday of each month; however, the final adjustments will be gazetted before then.