South Africans paying up to R36 per litre for petrol

Motorists are paying up to R36 per litre for petrol in real terms once all of South Africa’s various taxes are factored into the equation.

While the official retail price of petrol 95 is currently set at R22.34 per litre, the fact of the matter is that a person’s income is taxed well before it reaches their bank account, magnifying the cost burden for consumers.

Taxes every step of the way

The latest fuel adjustments came into effect on Wednesday, 5 March 2025, which cut the price of both petrol 93 and 95 by 7c per litre.

This means that road users are currently paying at least R21.30 per litre for petrol 93 at coastal rates, and up to R22.34 per litre for petrol 95 at inland rates.

While the modest reduction is appreciable, this is still much higher than what consumers were paying only a few months ago in October 2024, prior to four consecutive months of price hikes.

One reason that South Africa’s petrol prices are so high is because of the various taxes, levies, and duties that are placed on every litre, which collectively add R9.58 to the price you see at the pump.

In other words, 42.8% of what you pay for fuel goes directly towards covering taxes.

It’s not much better for diesel, either, as R9.27 of every litre is the result of taxes.

The single largest tax is the General Fuel Levy (GFL), which adds R3.84 per litre and goes towards the National Treasury for the government to spend as it sees fit.

The other major contributor is the Road Accident Fund (RAF) Levy, which adds another R2.18 per litre and is used by the RAF to fund its payouts for victims of motoring-related accidents.

On top of this, there are also customs and excise duties, a slate levy, a petroleum products levy, and a carbon tax levy.

Without these taxes, unleaded petrol 95 would cost just R12.74 per litre, while diesel would be around R10.97 per litre.

This is only half the story, mind you, as South Africans also pay personal income tax (PIT).

If a person falls in the 18% PIT bracket, the cost of petrol is actually R27.22 per litre in real terms once all of the various taxes are accounted for, according to a study done by BusinessTech.

This is because income tax indirectly adds another R4.90 to the final cost through lost wages, and this effect is magnified the further up the tax bracket you go.

For anyone in the highest income group of 45%, the true cost of petrol is actually around R36.06 per litre, as R13.74 is being channeled away through income tax, while another R9.58 is taken by fuel levies.

The following table shows a breakdown of how PIT and fuel taxes add to the base price of petrol.