On Wednesday, the price of petrol reached a new historic high – and plenty more record-breakers are expected in coming months, as red-hot oil prices may not cool soon.
The inland fuel price of 95 octane unleaded petrol (in Gauteng) rose to R24.17 a litre – from R17.13 a year ago. The price of 93 unleaded reached R23.94/l on Wednesday. The wholesale price of diesel in Gauteng increased to around R23.06/l.
Petrol prices would have topped R25 a litre if the cut in the fuel price levy was not extended on Tuesday.
The cut of R1.50 a litre was supposed to fall away at the end of May, but has since been extended until 6 July, followed by a downward adjustment to the relief for the second month - to 75c per litre from 7 July until 2 August.
It will be withdrawn from 3 August, according to a joint statement from National Treasury and the Department of Mineral Resources and Energy (DMRE) on Tuesday afternoon.
"The temporary reduction in the general fuel levy will only smoothen the impact of persistently higher fuel prices on consumers and businesses, as the economy will need to adjust to this new reality," the departments said.
The extension of the levy cut will cost government R4.5 billion in lost revenue, putting more pressure on a strained fiscus – but the economic cost of a R4 hike in the petrol price turned out to be a larger consideration.
