Cape Town - South Africa’s fuel price determination comprised different elements, some of which made fuel in the country more expensive than in neighbouring countries to which South Africa exported.
This is according to the AA, as it drafted a petrol breakdown in the country on Tuesday.
The AA said petrol users across South Africa were paying around R1.50 a litre more for fuel in May 2023 compared to the same time last year.
The increases to 93ULP inland and 95ULP at the coast represented increases of around 7% to petrol over a year period.
The wholesale price of diesel over the same period decreased from R21.99/l in May 2022 to R20.15 in May 2023 inland, and from R21.34/l in May 2022 to R19.43/l in May 2023 at coastal rates.
The AA noted that decrease to the price of diesel had to be seen against the backdrop of significant prices to this fuel between June and December 2022 when the price of a litre of diesel inland reached R25.40/l in July 2022.
“South Africa’s fuel price is comprised of many different elements, some of which make fuel in the country more expensive than in neighbouring countries to which South Africa exports.
“The costs are calculated using May fuel price data which incorporates the two main taxes paid on every litre of fuel namely the General Fuel Levy (GFL) and the Road Accident Fund (RAF) levy.
“Increases to these levies are usually announced in February during the Finance Minister’s annual Budget speech and come into effect in April.
“In 2023, no increases to these levies were affected, but they remain significant contributors to the overall prices of fuel.”
The total cost of the two main levies in May 2023 stood at R6.14 (R3,96 for the GFL and R2.18 for the RAF levy), which is levied on every litre of petrol sold in the country.
The GFL was lower for diesel at R3.82 while the RAF levy remained the same.
“Increases to fuel prices also mean an increase to goods which are transported across the country as operators recover these higher input costs through increases which are passed on to consumers.
“Other costs associated with the petrol price include transport costs (from the harbour to inland areas, which accounts for the difference in price between coastal and inland prices), custom and excise duties, retail margins paid to fuel station owners (currently R2.42 on every litre sold), and secondary storage costs. These costs currently total R4.24/l for inland petrol, and R3.52/l for coastal petrol.
“Using the current data, filling a 50-litre tank of fuel inland (93ULP) will cost R1 150.50 inland, and R1 130/l (95ULP) at the coast – R76.50 more now than a year ago.”
Cape Times