This is playing out like a horror movie: Fears about a gargantuan petrol price rise in June are being realised, as mid-month estimates reveal that the fuel costs set for next month could expand past the already-bleak projections.
Last week, we broke the shock news that the petrol price would spike at a ridiculous rate in little over two weeks’ time. That’s largely because a suspension on the General Fuel Levy expires, and another R1.50-per-litre will automatically be added on to the value.
However, even without the expiry of state intervention, June would have been a very rocky month for the motorists of Mzansi. That’s because two more established market factors have gone haywire, at the worst possible moment.
South Africa’s petrol price is updated on a monthly basis. Both the international crude oil price AND the Rand’s performance against other currencies dictates whether these costs will rise of fall. Unfortunately, oil is soaring, and ZAR is flailing.
These twin catastrophes, as it stands, may force fuel costs up by more than R2-per-litre themselves. Add that to the General Fuel Levy coming back into effect, and it’s possible that South Africans could see the petrol price skyrocket by about R3.50p/l.
That is already higher than the R3p/l increase that was predicted last week. This latest forecast seems bonkers, but the Central Energy Fund’s projections are rarely wide of the mark – and we’ve now got leading experts agreeing with the bleak forecast.
Economist Dawie Roodt said that it is ‘now likely’ that the petrol price will rise by R3.50 in June. That means some consumers could be forking out R25.50-per-litre when they enter the forecourt. It’s painful…
“Based on information, about two days ago the petrol price would’ve increased by nearly R2 a litre in any event. So we’re talking about R2 plus R1.50, bringing it up to R3.50. That’s what the increase is likely to be per litre of petrol in June.”