Higher than expected petrol and diesel price hikes on the cards for August 2023

Although general inflation appears to be easing, South African motorists will take another fuel price hit in August.

According to late month data released by the Central Energy Fund (CEF), the prices of both petrol and diesel are looking set to increase next month.

Those with petrol-powered cars will get off a little easier, with the current data pointing to an increase in the region of 36 cents per litre for 95 Unleaded.

Diesel prices are looking likely to rise by around 72 cents a litre for both grades, which will push the wholesale price past the R20 mark once again.

Keep in mind, however, that these predictions are based on unaudited data, and other factors such as the Slate Levy, could push the final prices in either direction.

The Department of Energy and Mineral Resources will announce the official fuel prices early next week ahead of them coming into effect on Wednesday, August 02.

Assuming that the petrol price goes up by about 36 cents, motorists will end up paying around R22.10 for a litre of 95 Unleaded petrol at the coast and R22.82 inland, where the cheaper 93 ULP will likely land around the R22.42 mark.

Although the South African rand has gained significant ground this month, it hasn’t been enough to offset substantially higher international oil prices. Brent Crude oil, which hovered around the $75 mark last month, is currently trading at $84.24.

According to Reuters, oil prices have risen for a fifth straight week on the back of strong economic data from the US, as well as speculation over Chinese stimulus measures and on OPEC+ output cuts.

The rand averaged R18.68 in June, but at the time of writing it was trading at R17.84.

Stay tuned for the official petrol and diesel price announcements early next week.

Be the first to comment

Leave a Reply

Your email address will not be published.