Brace yourself, petrol could soon reach the R27 per litre mark in July.
According to data released this week, something as minor as the rand weakening a bit or a minimal increase in oil prices worldwide could be why the price of petrol increases in the next month.
Over the years, the under-recovery rate has always been a good indication of pricing to come. According to the Central Energy Fund, the under-recovery rate was just over R2 per litre.
The government has recently announced a tax break to assist consumers who are struggling with the ever-increasing price of petrol and diesel. In July, 75 cents is due to be added back to the price of every litre sold. Whether it might still be happening is something no one is sure of.
Business Insider reports that extending the levy cut once has already cost the government R4.5 billion in revenue, at a time when national coffers are depleted after the pandemic, while both flood recovery in KwaZulu-Natal and big rises in food costs require emergency cash.
The new amount is worlds apart from the price of R19,61 we paid for 95 octane in January.
With the rand not holding strong enough against the dollar and Russia’s invasion of Ukraine, the price has increased by almost R6 to the litre already.
Image credit: DNA India