How in blue f*** are we meant to afford this, then? Latest projections from the Central Energy Fund (CEF) have South Africa on course for a crippling petrol price increase at the start of next month – where the per-litre cost for fuel could breach the R25-per-litre threshold.
The shock data has sparked outrage across the country. With fuel prices already sky-high, government intervention has only managed to ease the cost of petrol and diesel by meagre amounts. Indeed, the last two months of decreases now look set to be wiped out spectacularly.
Petrol price latest: SA on course for HORRIFIC R3-per-litre increasehttps://t.co/xydifxwMms
How grim is this? Latest projections from the Central Energy Fund reveal that the next petrol price increase will be devastating for SA.
— TheSouthAfrican.com (@TheSAnews) May 11, 2022
The CEF shows that the ‘over-recovery’ of both fuels is already nearing the R2 mark. However, this will be compounded by the fact that the General Fuel Levy suspension comes to an end in May. That means an additional R1.50 will be added to the final price for June.
LOOK: Here’s what the petrol price is forecast to reach in June 2022
Therefore, the petrol price could soar by more than R3.31-per-litre, and diesel could go up by a sickening R3.46-per-litre. For motorists based inland, this jarring increase could forces prices up past the R25-per-litre mark.
|Fuel type||Forecast per-litre costs for COASTAL regions in June 2022||Forecast per-litre costs for INLAND regions in June 2022||Projected increase|
|Grade 93 petrol||R24.11||R24.76||+R3.25|
|Grade 95 petrol||R24.40||R25.15||+R3.31|
General Fuel Levy suspension to expire – as misery mounts for motorists
This, in a nutshell, is the problem with temporary state intervention. Once the safety net is removed, the shock has to be absorbed by the public. However, it’s not just the return of the fuel levy posing a problem for Mzansi. Other factors have us down bad, too.
The Rand has seemingly thrown the towel in against other major international currencies, and after a volatile month, ZAR has lost ground of many of its major competitors – that’s usually enough to send the petrol price skywards.
However, crude oil costs are also soaring again, ensuring that the next rise in SA’s petrol price will be one for the history books. The forecast adjustments for June will also ensure that diesel remains MORE expensive than any other competing fuel.