South Africans pay the government R6.50 for every litre of petrol they buy

Despite the government’s efforts to shield motorists from skyrocketing petrol prices, South African motorists still pay more than R6 per litre of petrol towards taxes and levies.

Shortly before announcing April’s petrol price increases, the Minister of Finance and the Minister of Mineral and Petroleum Resources jointly announced a temporary R3 reduction in the General Fuel Levy (GFL).

The decision was taken as limited short-term relief to shield households from rising fuel prices following the Middle East conflict.

This measure was designed to be fiscally neutral, with the government implementing mechanisms to recoup the R17.2 billion in foregone tax revenue.

Since the initial relief announcement, the Middle East conflict has continued, resulting in further pressure on oil prices and leading to increases in domestic fuel prices.

To further shield motorists, the fuel levy relief was extended to May and June, with relief halving at the start of the month, before being phased out in July.

As a result, inland motorists are paying a record R28.06 per litre for 95 octane petrol this month after R1.50 was added back to petrol prices, resulting in a R1.43 per litre increase.

At the same time, diesel was hit with an R1.93 per litre tax increase, but still recorded a welcome R3.25 per litre decrease.

By the end of April, the cumulative slate amounted to a negative balance of R18.28 billion for petrol and diesel, necessitating an increase in the slate level from the start of June.

In line with the provisions of the Self-Adjusting Slate Levy Mechanism, the slate levy of R1.58 per litre was implemented in the price structures of both petrol and diesel, effective 3 June.

Next month, motorists can expect the complete phasing out of the state’s extended fuel levy relief, when the General Fuel Levy returns to pre-relief levels.

Additional fees attached to fuel prices

At the centre of the pump price paid for petrol and diesel is the Basic Fuel Price (BFP), which is determined by international factors, including crude oil prices, international supply and demand and the strength of the US dollar.

Other factors that have a knock-on effect on local fuel prices include the market-related costs of importing large quantities of liquid fuel from overseas refining centres and local distribution.

Once in the country and shipped to inland petrol stations, several additional fees will have been applied to every litre of petrol and diesel.

These include a 67c per litre wholesale margin for petrol and 99c per litre for diesel, storage and handling costs of 39c per litre and distribution costs of 19c per litre across the board.

Due to the transportation and distribution costs associated with getting fuel to inland retailers, a 91c per litre zone differential is implemented, followed by a retail margin of R3.15 per litre.

Altogether, these factors add around R6 per litre to the petrol pump price for both petrol and diesel, which is still less than the total added by duties and levies.

South Africa’s basic fuel price for 95 octane petrol for June 2026 is R16.09 per litre, and R20.21 per litre for 0.005% diesel, instead of the R28.06 and R29.26 per litre we currently pay.

Below are the taxes, levies, and duties currently applicable to each litre of fuel purchased in South Africa: