Fuel prices for July are expected to increase in South Africa as the Middle East conflict continues. The cost of fuel is dependent on Brent crude and international refined product prices, the exchange rate, levies and other logistics.
The latest data released by the Central Energy Fund (CEF) shows significant under-recoveries for both petrol and diesel. This, along with the current dollar to rand exchange rate and the increase in fuel levies, may negatively impact your pocket.
This means that the price of fuel will need to be increased to compensate for the under-recovery. However, it is still too early to determine the cost of fuel in the country. The CEF is yet to announce the official fuel price, which will take effect on Wednesday, 2 July.
MIDDLE EAST CONFLICT SPARKS INSTABILITY IN FUEL PRICES
The ongoing conflict in the Middle East has fuelled major instability in the global markets. US President Donald Trump has claimed that Israel and Iran have agreed to a ceasefire. However, it is unclear if this is the case.
The rumoured ceasefire follows the Iranian missile attack on a US base in Qatar. The Middle East is home to five of the top 10 oil producers in the world. These include, Iran, Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait.
HOW TO SAVE FUEL?
Every cent counts at the moment, and therefore it is highly important to save fuel however possible. The Automobile Association (AA) of South Africa says saving fuel is achievable with a few changes to your routine.
The AA encourages motorists to stick to the speed limits and not to accelerate harshly. Drivers are also urged to not use their aircon unnecessarily and avoid short trips.
HOW WILL RISING FUEL PRICES AFFECT YOUR DAILY BUDGET?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 11.
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