Fuel prices are on the rise in June – but they didn’t reach their horrifying potential, after the government made a last-minute decision to extend a reduction in certain taxes for the next two months.
Fuel prices increase confirmed, but out-and-out disaster averted
Ministers Gwede Mantashe and Enoch Godongwana have both agreed to slash the General Fuel Levy for an extra two months. Had it been allowed to expire as planned this evening, South Africans would likely have paid about R4-per-litre MORE on their fuel in June.
For the month ahead, the General Fuel Levy will again be reduced by R1.50 – as it has been since April. However, from 7 July, that number comes down to 75 cents. The offer will finally expire on 2 August 2022, and government is expected to pump around R4.5 billion into these adjustments.
How much will we pay for our petrol and diesel in June?
With these changes now made official, we can confirm that Petrol Grade 93 will shoot-up by R2.43 per-litre from Wednesday 1 June. Had it not been for the state intervention, some petrol consumers were staring down the barrel of a R4p/l increase.
Petrol Grade 95 will also rise by R2.33p/l, whereas R1.10 will be added to the value of diesel. Taking these changes into account, we’ve calculated what every road user will have to pay (on a per-litre basis) for their fuel in June:
- Petrol Grade 93: R23.94
- Petrol Grade 95: R24.17
- Diesel Wholesale: R23.09
- Petrol Grade 93: R23.29
- Petrol Grade 95: R23.42
- Diesel Wholesale: R22.47
Good news and bad news for June fuel prices
Not everyone is pleased with the ANC’s tactics here, though. Public Service Shadow Minister Leon Schreiber has branded Tuesday’s announcement as ‘a failure to deregulate the market’ – and he’s refusing to celebrate what is essentially a 10% monthly increase on fuel costs.
“The ANC government has just increased fuel prices by 10.7% to over R24 per litre. It is time to deregulate and cut the corruption taxes on fuel to bring the price down, so people can get to work and put food on the table.”Leon Schreiber