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Another big petrol price hike coming in July

| Economic factors

The price of petrol is expected to rise again in July in South Africa, which will come as another body blow for consumers who potentially face fresh electricity hikes.

The retail price of 95 octane petrol is likely to increase by about 52 cents per litre, while the retail price of 93 octane petrol should increase by about 38 cents per litre, said Paul Joubert, senior researcher at Solidarity.

The wholesale price of diesel should increase by about 8 cents per litre.

“These figures can still change as the month goes on, but they are unlikely to change very significantly,” Joubert said.

The likely increase is on top of the 47 cents a litre rise in June, and while the price was unchanged in May, March and April saw record increases, at 96 cents/litre, and R1.62/litre respectively.

“So far during June, the average international prices of 95 and 93 octane petrol have risen, while the rand has, on average, been weaker against the dollar than it was on average during May,” Joubert said.

“The international price of diesel has decreased marginally, as the demand for diesel drops due to the Northern Hemisphere’s summer months, resulting in a lower increase for diesel.”

Should the expected increases do take place, a litre of 93 octane petrol in Gauteng will cost R13.60 in July 2015.

This will still be 3.4% lower than the price of R14.08 in July 2014, the researcher pointed out.

“If the rand continues to weaken and oil prices remain stable or increase, the first year-on-year increase in petrol prices since November 2014 will likely take place in September 2015, or in August if we are unfortunate,” Joubert said.

The final announcement on the changes to fuel prices will be made by the Department of Energy on Friday, 26 June.

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