By Angelique Ruzicka, editor, Justmoney
Motorists are going to be stung with another petrol price increase, which will come into effect on the 2 July. From Wednesday the retail price of petrol will go up by 31 cents a litre while diesel will go up by 14 cents. Illuminating paraffin will increase by 31 cents as well, while the price of gas will jump by 58 cents.
The Department of Energy warned all motorists to continue implementing fuel efficiency measures, such as using public transport and lift clubs whenever possible to save on fuel.
It said the increase in prices of all petroleum products is due to changes in international factors, such as the rise in crude oil prices, the rand/dollar exchange rate and the prices of finished products. The rand has been hard hit against the dollar and depreciated against the American currency from $10.40 to $10.68 during the period under review.
Last month the crude oil price peaked above $115 (R1220) per barrel, which led to an increase in the prices of petrol, diesel, illuminating paraffin and liquefied petroleum gas in the international markets.
Fuel levy to replace e-tolls?
Separately, the ANC may ditch its controversial decision to toll Gauteng’s freeways and impose a national fuel levy on motorists instead to pay back its R20 billion public infrastructure debt. According to reports, the party is concerned about going into the municipal elections with such a contentious issue as e-tolling hanging over it.
But don’t think the e-toll system is going to be dropped any time soon because investigations into whether it’s a good idea are only just about to start.
During his state of the province address Gauteng Premier Makhura said he would set up a panel “to review the impact of e-tolls and invite new proposals on how we can find a lasting solution to this matter.” The National Roads Agency Limited (Sanral) is also opposed to the idea so only time will tell whether Gauteng’s Premier gets his way.
For more about how you can save money on fuel, click here