Speculation’s been building about how much more we would be paying for our fuel before today’s announcement by the Department of Energy. A general consensus suggested it would be between 80c and 90c a litre.
And today we got the confirmation that we’ve all been dreading…
The petrol price is to increase 84c a litre
As of Wednesday, the “retail price of all grades of petrol will increase by 84c a litre to a new record high,” reports BDLive
. You can thank the weak rand and an increase in international fuel prices.
If you’re ‘lucky’ enough to have a diesel, the increase is “78.2c a litre”.
Today’s hike will see “the Gauteng retail price per litre to R13.00 and R13.23 for 93 and 95 unleaded respectively” whereas if you’re “at the coast” you’ll now be paying “R12.80 and R12.86 for 93 and 95 unleaded respectively,” reports Fin24
It looks like we’re in for a “tough July with electricity price hikes also due to kick in,” adds Fin24
In addition, the Department of Energy increased the price of paraffin. “The wholesale price of illuminating paraffin is set to rise by 75 cents a litre” and the “national retail price of paraffin is set to increase by R1 a litre,” report IOL
The weakening rand has played a major role in this hike. Not surprising when you take a look at the numbers.
The weak rand played an enormous role in the latest hike
Between 31 May and 27 June, the average rand/dollar exchange rate was 10.0487. Compare that to the previous period when it was ‘only’ 9.2987 adds IOL
, and this demonstrates the real pressures on imports.
Next week’s increase will “more than wipe out cuts of 8c a litre in June and 73c a litre in May,” adds BDLive
With such a big hike, it is unlikely inflation will remain unaffected. Surely it’s set to rise.
It looks like we’re in for some more belt tightening…