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The make up of our petrol price - Media

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The make up of our petrol price

At the time of writing, May 2021, one litre of 93 Octane Petrol cost R17.01 inland and R16.51 at the coast.

The make up of our petrol price

The make up of our petrol price

 

At the time of writing, May 2021, one litre of 93 Octane Petrol cost R17.01 inland and R16.51 at the coast. This is up around R5/L (or 39%) when compared to the same time in 2020. What is interesting to note is just how this legislated fuel price is determined, and how much tax we pay on every litre of fuel…

According to The Automobile Association of South Africa (AA), the fuel price in South Africa is comprised of four main elements:

 

  • The General Fuel Levy (GFL)
  • Road Accident Fund (RAF) Levy
  • Basic Fuel Price (freight and insurance costs, cargo dues, storage and financing)
  • Wholesale and retail margins, and distribution and transport costs

 

At the time of writing, the GFL is R3.93 per litre, or about 23% of the total price of fuel. The RAF accounts for another R2.18 per litre, or 13% of the fuel price. Combined, the GFL and RAF amount to R6.11 (36%) per litre of fuel sold in the country.

The GFL goes to the Treasury, and the government is able to use this money as it sees fit. This year it will amount to an amount in the region of R83 billion.

The RAF will contribute approximately R43 billion to the treasury, but this amount can only be used for RAF-related cases.

The Basic Fuel Price right now is R7.15, which is made up of the purchase price (in US dollars) as well as the associated costs mentioned above. In South Africa the fuel price is adjusted on the first Wednesday of every month and is determined by two main factors: The Rand/US Dollar exchange rate (how fuel is purchased), and international petroleum prices (how much the fuel costs to purchase).

The final contributors to the gross petrol price are those costs associated with transport and storage, custom and excise duties and retail margins for fuel station owners (currently R2.22/litre). The total for this is R3.75/L for inland fuel, and R3.23 for coastal fuel.

Using the current data, filling the 37-litre fuel tank of a Toyota Starlet will cost R630 inland (93 Octane) and R611 at the coast (95 Octane) – R185 more now than a year ago.

 

 

The make up of our petrol price

 

At the time of writing, May 2021, one litre of 93 Octane Petrol cost R17.01 inland and R16.51 at the coast. This is up around R5/L (or 39%) when compared to the same time in 2020. What is interesting to note is just how this legislated fuel price is determined, and how much tax we pay on every litre of fuel…

According to The Automobile Association of South Africa (AA), the fuel price in South Africa is comprised of four main elements:

 

  • The General Fuel Levy (GFL)
  • Road Accident Fund (RAF) Levy
  • Basic Fuel Price (freight and insurance costs, cargo dues, storage and financing)
  • Wholesale and retail margins, and distribution and transport costs

 

At the time of writing, the GFL is R3.93 per litre, or about 23% of the total price of fuel. The RAF accounts for another R2.18 per litre, or 13% of the fuel price. Combined, the GFL and RAF amount to R6.11 (36%) per litre of fuel sold in the country.

The GFL goes to the Treasury, and the government is able to use this money as it sees fit. This year it will amount to an amount in the region of R83 billion.

The RAF will contribute approximately R43 billion to the treasury, but this amount can only be used for RAF-related cases.

The Basic Fuel Price right now is R7.15, which is made up of the purchase price (in US dollars) as well as the associated costs mentioned above. In South Africa the fuel price is adjusted on the first Wednesday of every month and is determined by two main factors: The Rand/US Dollar exchange rate (how fuel is purchased), and international petroleum prices (how much the fuel costs to purchase).

The final contributors to the gross petrol price are those costs associated with transport and storage, custom and excise duties and retail margins for fuel station owners (currently R2.22/litre). The total for this is R3.75/L for inland fuel, and R3.23 for coastal fuel.

Using the current data, filling the 37-litre fuel tank of a Toyota Starlet will cost R630 inland (93 Octane) and R611 at the coast (95 Octane) – R185 more now than a year ago.