Analysts and economists are warning South African motorists to brace for a massive increase in fuel prices next month, as the government’s General Fuel Levy intervention is expected to come to an end.
Analysts and economists are warning South African motorists to brace for a massive increase in fuel prices in June, as the government’s General Fuel Levy intervention is expected to come to an end.
“The government provided short-term relief through reducing the GFL, but this relief ends at the end of May going into June. If the GFL returns to its set rate, that will add another R1.50/l to petrol and diesel and will certainly push the prices of these fuels much higher,” said the Automobile Association.
An early month snapshot from the Central Energy Fund shows that both these factors – a weaker rand and a higher oil price – paint a bleak picture for local fuel prices going forward. If the trends continue – or worsen – motorists could see the R1.50 added another record increase for petrol and diesel, and may need to brace for a R3-plus per litre hike in prices.South Africa’s rand remains on the back foot against the dollar this week, which continues to gain strength due to concerns over slowing economic growth globally, rising interest rates, and war risks, leading to increased market volatility.
Global oil prices have been primarily impacted by Russia’s invasion of Ukraine, which has led to supply concerns – particularly as the European Union moves to ban the use of Russian oil as a sanction against the war.
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