It’s another blow for motorists when, from 6 July, they will pay more to fill up their tanks.
The energy department announced that the price of petrol would increase by 8c for 95 octane, while the price of 93 octane will go up by 11c.
Diesel users will be hit the hardest with the fuel increases. The department announced that the price of diesel will go up by between 41 and 42c. Paraffin users will also pay more as the price will increase by between 43c and 57c per litre. The maximum retail price of LP gas will also go up by 12c per kilogramme.
The Automobile Association (AA) said despite a turbulent period in world markets in the wake of the United Kingdom’s referendum on leaving the European Union, the average rand/US dollar exchange rate used to calculate the fuel price strengthened slightly in the rand’s favour during June.
This, coupled with an oil price which dropped sharply in the wake of the UK referendum result, had a favourable effect on South African fuel prices. However, the AA warned that ongoing volatility posed a risk of further price hikes.
“Both the basic fuel price and the daily exchange rate saw wild swings either way in June,” the AA commented.
“We expect further volatility in the short to medium term as world markets continue to digest the consequences of the UK’s referendum to leave Europe. This means that any additional political or economic shocks are likely to have a strong impact on South African fuel users,” the association concluded.
