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We take a look at the latest fuel prices announced by the department of energy and for once South Africans will be oh so used to. Fuel prices will be increasing in August 2019. Luckily for South Africans it is a very marginal increase. But based on the struggling exchange rate so far in August 2019 we suspect a big petrol price increase will be hitting South Africans in September 2019
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Fuel prices in South Africa up to August 2019
The line graphs below shows the monthly retail petrol price for 95 Octane petrol at the Reef (inland) vs the 95 Octane petrol price at the coast over the last number of years and the underlying trend in the fuel price as can be seen from the line graph below is a steady upwards slope with little to no reprieve for South Africans. With the July 2019 fuel price 95 Octane for those living in Gauteng for example sitting at R15.92 a litre. Compare this to the price of R14.01 in January 2019. Thats a R1.91 (13.63% increase in the fuel price since the start of the year).
The November 2018 fuel prices were officially the highest retail fuel prices ever paid in South Africa, beating the highest fuel prices in history of the previous month and the month before that. While South Africans had a short reprieve from rising fuel prices in December 2018 and January 2019, the Rand has weakened since December and the world crude oil prices are substantially higher which is a lethal cocktail for rising fuel prices and in the end inflation and interest rates. Fuel prices increased steadily until July 2019 saw a significant cut in the petrol price for South Africans. But as mentioned in the introduction the Rand has struggled over the last week or so, and this will make the cost of importing crude more expensive and this will have a significant impact on September 2019's fuel prices. See the Rand's struggles here.
The South Africa government, desperate to collect more taxes decided to raise the fuel levy and the road accident fund levy effective April 2019, so these increases are now a permanent feature of the latest fuel price. And so is the carbon tax implemented in May. Currently more than 50% of the fuel price will be made up by taxes, margins, levies and other costs. Only two things in life are certain, that is death and taxes. And in South Africa it seems that the government wants to combine the two by taxing its citizens to death.
The following regarding the fuel price was reported on by Fin24.com
The retail price of petrol will increase by 11 cents per litre from August 7, the Central Energy Fund (CEF) said in a statement. The Central Energy Fund said the economic factors which contributed to the price adjustments included the rand/dollar exchange rate for the period from 28 June 2019 to 01 August 2019, which was 14.0709 compared to 14.6227 during the previous period. "This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 27.59c/l,28.56c/l and 28.89c/l respectively." The wholesale price for illuminating paraffin will decrease by 2 cents.
The following regarding the fuel price was reported on by Fin24.com
The retail price of petrol will increase by 11 cents per litre from August 7, the Central Energy Fund (CEF) said in a statement. The Central Energy Fund said the economic factors which contributed to the price adjustments included the rand/dollar exchange rate for the period from 28 June 2019 to 01 August 2019, which was 14.0709 compared to 14.6227 during the previous period. "This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 27.59c/l,28.56c/l and 28.89c/l respectively." The wholesale price for illuminating paraffin will decrease by 2 cents.