Sharp petrol hike on the cards
18 June 2009

JOHANNESBURG (Wheels24.co.za) - Consumers should brace themselves for a steep fuel price hike in July.

This is because the daily under-recovery of fuel has slipped to an average of 43.7c per litre for unleaded petrol and 37.1c/l for diesel in the first half of June.

The price of Brent crude oil has risen from about $58 per barrel a month ago to about $70/barrel.

"The petrol price is likely to go up by 42c/l, which is an increase of 5.6% and will have a mild inflationary impact on the economy," said economist Mike Schüssler of Economist.co.za.

Should the trend continue, the price of petrol will increase to about R7.92/l in the interior (about R7.70 in coastal areas), and that of diesel to about R6.82/l (R6.70/l in coastal areas).

The department of energy affairs will announce the new fuel prices on Friday June 26. They will take effect on Wednesday July 1.