Motorists left counting the cost amid another hefty hike in petrol, diesel price
The Department of Minerals and Energy has announced another big hike in the price of fuel in July.
The price of 95-octane unleaded petrol will rise by R2.57 a litre, while 93-octane unleaded petrol will go up by R2.37 a litre.
Diesel prices will rise by R2.31 (0.05% sulphur) per litre and R2.30 (0.005% sulphur) per litre respectively.
While illuminating paraffin will cost R1.66 cents a litre.
The fuel prices will come into effect on Tuesday at midnight.
The department says the reasons for the spike include increasing demand for crude oil as China lifts Covid-19 restrictions, and the EU reached an agreement to partially ban crude oil and petroleum products from Russia by the end of the year.
"The crude oil supply was affected by OPEC’s inability to meet the agreed supply quota despite increased production, as well as Libya protests. Middle distillates stocks for diesel and jet fuel still remain low due to a global decrease in refining capacity."
The rise in the price of fuel has been somewhat tempered by the temporary reduction in the general fuel levy of 75 cents a litre, which will remain in place until August.
Economist at Efficient group Dr. Francios Stoffberg says the high fuel price is likely to remain in place for the next six to 12 months.
"After that, we should see a strong decline in petrol price, because the world is already moving from away from fossil fuels, crude oil and moving towards work from anywhere and the demand for fuel will fall drastically and supply sheet continue to decrease.”
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