Fuel prices will rise significantly for the second consecutive month on Wednesday.
The Department of Energy confirmed that the price of 93-octane gasoline will increase by R1,63 per liter, while the 95-octane gasoline will increase by R1,72 per liter. Diesel with a sulfur content of 0.05% will increase by R1,73 per liter and diesel with a sulfur content of 0.005% will increase by R1,69 per liter.
Paraffin becomes more expensive by R2.14 per liter while gas by more than R4.48 per kilogram. According to the department, the main reasons for the increase were the rand-dollar exchange rate and the rise in oil prices and petroleum products.
The Automobile Association (AA) earlier said the rand strengthened to about 34 cents against the US dollar in June, although the local currency is still about R2.50 weaker against the dollar than before the Covid 19 pandemic and the country’s credit downgrade.
“We cannot overstate the impact that the rand collapse currently has on fuel consumers. If the rand remained at the level it was before the Covid 19 pandemic, fuel consumers would probably have seen a 75 cents a liter drop in fuel prices next month, ”the AA said.
The petrol price rose by R1.18 per liter at the beginning of June, while the price of diesel rose by between 21c and 22c per liter. Paraffin rose by between 40c and 54c and gas by R1.98.