Petrol Price To Increase Wednesday Midnight

Motorists expected to dig deeper once more into their pockets as petrol price is due to increase on Wednesday midnight. Read further for more.

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Fuel hikes were announced by the Minister of Mineral Resources, Gwede Mantashe, in a statement on 2 August 2021 citing international and local factors.

Mantashe stated that the main reasons for the fuel hikes are as a result of crude oil which increased from 73.00USD to 74.00USD per barrel. Petrol prices are expected to increase from Wednesday, 4 August, as follows:

  • Petrol 95: Increase by 91 cents per litre
  • Petrol 93: Increase by 91 cents per litre
  • Diesel 0.05: increase by 55.58 cents per litre
  • Diesel 0.005: increases by 54.58 cents per litre
  • Paraffin: increase by 50 cents per litre

The Econometrix Director and Chief Economist Dr AZA Jammine believes that the new fuel hikes will have a severe impact on consumers.

The consumers will now have R2.50 less for every R1000 that they spend. It is not huge, but it makes a difference in food prices.

Dr Jammine says the world economy is doing well in industrialized countries that distributes vaccines. This means transport is being used as people travel more and it leads to a huge demand for crude oil causing oil prices to rise.

Experts also cited the loss of power in rand because of the recent looting riots which took place in KwaZulu-Natal and Gauteng province for these price hikes.

Its reported that the effects of being in a lockdown for over 495 days has also caused slow growth in the economy compared to other countries.

Dr Jammine however says there is light after dark, citing that the country’s economy was recovering well before the looting unrests.

He said now that calm has been restored, the recovering state is expected to continue as government offered to help businesses to rebuild.

Also, he added that this fuel increase has more to do with Crude oil demand worldwide than it is for South African economy.

Dr Jammine says until all the lockdown rules are lifted, the country will not see any significant growth in economy.

Motorists can expect to pay 91 cents extra by Wednesday midnight per litre which is also expected to affect public transport users.

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