Petrol price for July 2020: Brace yourselves, a monster increase is coming
If you can think of one news story to sum up life in South Africa, you’d choose this one. After record petrol price cuts were introduced in April and May – when we couldn’t go anywhere – a major increase in fuel costs is set to hit Mzansi in July. The forecast spike will go a long way towards wiping out the huge decreases seen this year.
HOW MUCH WILL THE PETROL PRICE INCREASE BY NEXT MONTH?
Petrolheads and the millions of motorists across the country will likely blow a gasket when they clock these rises. Figures from the Central Energy Fund (CEF) show that the petrol price for July 2020 could rise by up to R1.59-per-litre. The predicted price of diesel is also similarly eye-watering, rising by as much as R1.48-per-litre in two weeks’ time.
Well, what comes down must eventually go up, as far as the market is concerned. Fuel became much cheaper across the world in April, as scores of countries went into hard lockdown.
WHY FUEL IS GETTING MORE EXPENSIVE IN JULY
The need for gasoline tailed off and sent the petrol price plummeting. But, as the world emerges from its COVID-19 cocoon, the demand for oil has been skyrocketing lately, and the per-barrel price has somewhat stabilised.
Although the rand has staged a significant recovery against the US dollar, it hasn’t been enough to mitigate the oil surge. South Africa is largely dependent on fuel imports, so when the need for ‘black gold’ rises, so do our diesel and petrol prices. Fears over a localised fuel shortage in SA have also done the consumer no favours.
THE FORECAST PETROL PRICE FOR JULY 2020
Taking these forecasts and first estimates into account, here’s what you can expect to pay for fuel (price-per-litre) from the first week of July onwards. However, we have to stress that these mid-month estimates are liable to change by the time the Department of Energy set next month’s costs in stone.
- Petrol: R14.29
- Diesel: R12.28
- Petrol: R14.79
- Diesel: R12.88
Originally Published by The South African