Hike in Fuel Price Expected in July

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International Petroleum prices have increased significantly, as a result South Africans anticipate an increase in for this internationally imported resource.


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International petroleum prices have increased significantly, as a result, motorists in South Africa should anticipate an increase in fuel costs in July 2021.
Following how petrol prices increased notably in June, South Africans were hopeful that by July there would not be an increase.
The rand was gaining value against the U.S dollar in June; however, the growth was not enough to match international oil prices.
The Automobile Association predicts a 23 cents increase for petrol, while diesel is likely to increase by 38 cents, and 32 cents increase for illuminating paraffin.
An increase in fuel prices affects prices at large as prices charged for importing goods and resources also increases, which adds extra charges for consumers.
Manufacturers increase the prices of goods to regenerate expenses of fuel used for machinery in the manufacturing process. While some use petrol, most machines operate with diesel, making the demand very high.
Agriculture is one of the departments that support the country's economy, and it uses a lot of diesel for production. Other service providers such as courier companies also use diesel.
For the most vulnerable communities who depend on illuminating paraffin for energy, the price hike could not have come at a worse time.
In the middle of a pandemic that has resulted in an overwhelmed economy with people not getting annual increases, fuel prices increased in the middle of the winter season.
Automobile Association Spokesperson Layton Beard said, "we cannot predict a decrease in fuel prices as they are determined by the international market, but we can hope for better prices in the near future as the international economy regularly fluctuates".
The department of mineral resources and energy is expected to announce new prices for these internationally imported resources next week.
 

 

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