It has recently been reported that South African fuel prices will increase again next month, leaving motorists to revisit their budgets once again. According to the mid-month data published by the Central Energy Fund’s (CEF), the market is in bad shape and if this continues, motorists will be faced with a price hike of about 34 cents per litre for petrol and a dreadful 68 cents for diesel.
The lockdown detrimentally affected the market causing an oil crash in April which could result in a third successive fuel hike in South Africa. Last month, the Automobile Association predicted that the petrol price will rise by R1.73 a litre, diesel will increase by R1.74 a litre and, illuminating paraffin by R2.14 at the beginning of July.
Multiple motorists are still trying to fit the unforeseen increase into their budgets and now they are tackled by another increase. The Centurion-based consultancy, Consulta, recently measured the petrol industry the highest according to customer satisfaction, but will this unceasing fuel price hike affect their stats for next month? Are motorists still happy despite the upsurge?
South African petrol prices are determined by the oil prices and the rand/dollar exchange. Due to the pandemic, our country’s economy suffered greatly and inconveniently, limiting our oil imports which we severely bank on.
Even though this year has been thought-provoking, the good news is that the rand has been the top performing currency amongst other currencies for three consecutive weeks and there is a bit of hope that the prices might remain steady due to this.