Petrol price to reach record high on July 7

Rising oil prices drove the latest hikes, despite the rand’s appreciation against the dollar.
Rising oil prices drove the latest hikes, despite the rand’s appreciation against the dollar.
Image: Supplied

The petrol price will reach a record high when major hikes come into effect on Wednesday.

In a blow to motorists, the central energy fund (CEF) announced that the retail price of 95 octane petrol will rise by 26c a litre and 93 octane by 29c, while the wholesale price of diesel increases by 41c for low-sulphur 50ppm and 42c for 500ppm.

Illuminating paraffin increases by 36c/l.

The different price adjustments for the two petrol grades is the result of the differentials being adjusted at the beginning of each quarter.

The inland price of 95 octane petrol will from July 7 be a record R17.39/l, from  a previous high of R17.32/l in April. At the coast, 95-octane petrol rises R16.67/l.

The wholesale price of 500ppm diesel will increase to R15.08/l inland and R14.47/l at the coast.

The hikes are unexpectedly high given that earlier this month the Automobile Association forecast a 6c/l decrease for petrol in July with diesel facing a 20c increase, based on unaudited mid-month figures.

Rising oil prices drove the latest increases, which the rand’s appreciation against the dollar was not enough to offset.

The CEF said the average exchange rate for May 28-July 1 was R13.9219/$ compared with R14.111/$ during the previous period. However the price of Brent crude increased to $75 a barrel from $69 over the same period.

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