July petrol price: Brace yourself, another massive hike coming this week

Mineral Resources Minister Gwede Mantashe on Monday announced a massive increase to the petrol price, effective from 6 July 2022.

Various international factors play a role when a new fuel rate is determined, such as crude oil prices, the rand/US dollar exchange rate, and the slate levy.

July petrol prices

On Wednesday, 6 July, petrol rates will skyrocket by a whopping R2.37 per litre for 93 ULP, and by R2.57 for 95 ULP.

Meanwhile, diesel will increase by R2.31 per litre (0.05% sulphur), and R2.30 for 0.005% sulphur. Illuminating paraffin will go up by R1.66 per litre.

At the time of publishing, the average Brent crude oil price increased from $115.00 to $115.77. Moreover, crude oil supply was affected by OPEC’s inability to meet the quota, as well as the protests in Libya.

ALSO READ: Petrol price unlikely to drop below R20 per litre for two years, expert warns

Exchange rate

In addition, the Bureau for Economic Research (BER) warns that South Africans can also expect a weaker rand due to the subdued economy, thanks largely to the ongoing load shedding.

This despite the rand appreciating, on average, against the US dollar – from 15.95 to 15.76 – during the period under review when compared to the previous one.

Unfortunately, international petrol, diesel and paraffin prices also increased due to the ongoing Russian-Ukrainian war.

Fuel levy

Government’s relief levy of R1.50 per litre – introduced in April 2022 – will be lowered to 0.75c, while the full levy will take effect from August.

“The levy relief is expected to fall away completely next month (August).

“The under-recovery part of the fuel increase is largely due to higher international oil product prices, with a somewhat stronger rand at the start of the month capping the rise slightly,” said BER.

In June, Outa said the fuel price reprieve must remain in place while petrol prices remain above R22 per litre.

READ MORE HERE: Outa calls for R1.50 fuel levy reprieve to be extended for July