Petrol is expensive in South Africa due to a combination of global and local factors. Nearly half of the fuel price (around R9.74 per litre) comes from the Basic Fuel Price, which reflects international oil prices and the cost of importing refined petrol. A significant portion—about 31%—is made up of government taxes and levies, including the General Fuel Levy (R3.96), the Road Accident Fund Levy (R2.18), and a Carbon Fuel Levy (14 cents).
The remaining cost is attributed to wholesale and retail margins (R2.74) and distribution and storage expenses (R1.14). Additionally, the weak rand against the US dollar further pushes up the cost of fuel imports. All these factors combined result in high petrol prices for South African consumers.
Here's a detailed breakdown of the petrol price in South Africa as of April 2025:
1. Basic Fuel Price (BFP):
- Definition: Represents the cost of importing refined petrol into South Africa, including freight, insurance, and storage.
- Current Rate: Approximately R9.74 per litre, accounting for about 48% of the total petrol price.
2. Taxes and Levies:
General Fuel Levy:- Purpose: A tax collected by the government for general revenue.
- Rate: R3.96 per litre (396 cents per litre).
Road Accident Fund (RAF) Levy:- Purpose: Funds the RAF, which compensates victims of road accidents.
- Rate: R2.18 per litre (218 cents per litre).
Carbon Fuel Levy:- Purpose: Aims to reduce carbon emissions.
- Rate: Increased by 3 cents to 14 cents per litre for petrol, effective April 2, 2025.
- Total Taxes and Levies: Approximately R6.28 per litre, constituting about 31% of the petrol price.
3. Wholesale and Retail Margins:
- Purpose: Covers the profits and operational costs of wholesalers and retailers.
- Current Rate: Approximately R2.74 per litre, making up about 14% of the total price.
4. Storage and Distribution Costs:
- Purpose: Encompasses expenses related to transporting and storing fuel across the country.
- Current Rate: Around R1.14 per litre, accounting for about 6% of the petrol price.
Summary of Petrol Price Composition (April 2025):- Basic Fuel Price (BFP): R9.74 (48%)
Taxes and Levies:- General Fuel Levy: R3.96
- RAF Levy: R2.18
- Carbon Fuel Levy: R0.14
- Total Taxes and Levies: R6.28 (31%)
- Wholesale and Retail Margins: R2.74 (14%)
- Storage and Distribution Costs: R1.14 (6%)
This breakdown illustrates that a significant portion of the petrol price is influenced by international factors (like the BFP), while domestic taxes, levies, and operational costs also contribute substantially.
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| Below is the full break-down for coastal petrol (93 Unleaded): |
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| And inland (95 Unleaded): |
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