Fuel levies are back, but July's petrol price outlook isn't all doom and gloom

As we inch closer to July, it’s time for another look at the latest round of fuel price predictions, courtesy of the Central Energy Fund (CEF). If we’re lucky, South Africans could be in for a sizeable petrol and diesel price cut come the new month, even after the National Treasury reintroduces the deducted fuel levies back into the mix.

Everything’s coming up fuel

The government initially established the fuel tax levy relief scheme to provide some solace in the face of the astronomical fuel price hikes the country experienced in recent months. The scheme has proved effective, with the government sticking true to its word that the relief would be lifted entirely at the beginning of July.

“From 1 July onwards, the general fuel levy for petrol will return to R4.10 per litre and the general fuel levy for diesel will return to R3.93 per litre,” the National Treasury wrote.

This will see R1.50/l and R1.97/l added back onto the petrol and diesel prices, respectively, this July. Despite this, the CEF’s latest predictive figures (captured on 17 June) reckon the country will still see a price cut at the pumps. While the overall price is still far, far higher than we’d like ’em to be, it’s a step in the right direction.

Specifically, the CEF expects to see a decent reduction of R2.80/l from the price of petrol. It’s an even prettier site where diesel is concerned, facing a cut of around R4.80/l. These prices, however, do not take into account the fuel levies, meaning the actual reductions will be a bit light by the time they turn up at the pumps.

We should note that the CEF’s figures below aren’t final and are subject to change. The CEF, in conjunction with the Department of Petroleum and Mineral Resources (DPMR), tracks the various economic factors that influence the price of fuel locally. Using this data, it provides a rather accurate look at what’s in store for SA’s fuel prices. The official fuel price adjustments will come into effect on Wednesday, 1 July.