Just in: Huge petrol price hike announced for June 2022

A huge petrol price hike has been announced for June 2022.

The Department of Mineral Resources and Energy announced the fuel price adjustments for June 2022 a few hours before they come into effect at midnight. There are substantial increases for motorists driving both petrol and diesel vehicles but it could have been worse.

From Wednesday, 1 June 2022, the retail prices of unleaded 95 and unleaded 93 petrol will increase by R2.33 and R2.43, respectively.

That will push the inland price of petrol to around R24 per litre and over R23 on the coast.

Motorists with diesel cars will be slightly better off, with wholesale prices increasing by R1.07 for 50ppm and R1.10 for 500ppm.

The price increases for petrol, diesel, and illuminating paraffin will be as follows:

• Unleaded 95 petrol — Increase of R2.33
• Unleaded 93 petrol — Increase of R2.43
• 50ppm diesel — Increase of R1.07
• 500ppm diesel — Increase of R1.10
• Illuminating paraffin — Increase of R1.56

The department also scrapped the demand-side management levy of 10 cents per litre on unleaded 95 petrol, providing a small bit of extra relief.

The steep increases were driven by the Brent Crude oil price increasing from $104.78 to $115.00 compared to the previous period of assessment.

The rand also weakened significantly against the dollar over the same period, from R14.90 to R15.95.

Fortunately, the National Treasury and the Department of Energy earlier today announced the reduced general fuel levy (GFL) will be in place for another month.

That avoided a potential devastating petrol price hike of close to R4, which would have been around a 20% increase.

The R1.50 reprieve will be extended until 6 July 2022 and then reduced to 75 cents until 2 August 2022.

From 3 August 2022, the regular GFL will apply, which means there will be no tax relief.

The table below shows how much more it will cost to refill petrol tanks of various common sizes at an inland fuel station in June 2022.