Home Official petrol price for August confirmed: Four things you need to know

Official petrol price for August confirmed: Four things you need to know

The government has issued a statement to confirm that the petrol price will increase in August, making it a hat-trick of consecutive rises. We’ve got the breakdown of what our fuel will cost, and why it’s going up this month:

What is the petrol price in August 2020? Four things to know:

Increases across the board

  • All grades of petrol will rise by five cents per litre, costing road users anywhere between R14.45 – R15.15p/l.
  • All grades of diesel will rise by 45 cents per litre, costing road users anywhere between R12.90 – R13.50p/l.
  • Illuminating paraffin will rise by 39 cents per litre.

When the changes to our petrol price come into force

From midnight on Tuesday (essentially, the first minute of Wednesday 5 August), all increases will come into effect. They will be reviewed at the end of August, with a change likely in the first week of September.

‘Global oil price’ to blame for August increase

If you’re wondering why we have had three petrol price hikes in a row, you can blame the oil market. A rapid decline in demand brought record decreases to South Africa in April, but those gains have been wiped out over the winter. A world emerging from various lockdowns is buying up oil supplies, sending the prices skyrocketing again. SA relies heavily on imports, meaning our petrol price largely depends on global activity.

Rand recovery eased some of the damage

ZAR has managed to strengthen its value against the US Dollar, climbing to R16.82 against the greenback. This helped claw about 10 cents per litre off the initially forecasted hike, but ultimately, it wasn’t enough to cancel out the impact of the oil price. The rand was trading at R17.43 to the American currency last month.



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