How much you’re paying for petrol – Before the government gets its cut

Various taxes and levies account for nearly a third of the cost of every litre of petrol sold in South Africa, according to an analysis published by the Department of Mineral Resources and Energy.

Fuel taxes have been in the spotlight recently as motorists continue to grapple with the cost-of-living crisis, encompassing everything from high fuel prices to skyrocketing rent and grocery bills.

This growing frustration has led to stark criticism of the nation’s various petrol levies, which greatly inflate the price of what is considered to be an essential commodity.

The Automobile Association (AA) and the Organisation Undoing Tax Abuse (Outa) have been especially critical of the government’s use of the General Fuel Levy (GFL) – the single largest tax placed on fuel.

The GFL is not earmarked for specific causes like other taxes, and the government is free to spend it as it sees fit.

Consequently, Outa and the AA claim that the government has become far too reliant on the GFL to make up for its budget shortfalls.

The heavy regulation of the fuel industry also means it is impossible for motorists to avoid paying this tax, making it a golden goose for the National Treasury.

Another significant contributor is the Road Accident Fund (RAF) levy, which has also been heavily criticized in recent years.

The levy goes into a fund meant to compensate persons for a loss of income or injuries sustained in road-related accidents.

However, the RAF has been grossly mismanaged with payments sometimes being made without following due process.

This has raised questions about whether the levy is being used for its intended purpose.

In July 2025, transport minister Barbara Creecy suspended the RAF board for allegedly failing to act in the entity’s best interests and fulfil its fiduciary duties.

RAF CEO Collins Letsoalo was also fired after it was revealed that he spent R10 million in public funding on an extensive security detail for his family, despite no proof of threats to his safety.

Letsoalo spent R4 million on an armoured BMW X5, three VW Golf GTIs (valued at R853,400 before extras), and salaries for nine bodyguards.

Rising public backlash and pressure from civil action groups have forced the government to rein in adjustments to the GFL and RAF levy in recent years.

However, the GFL was raised earlier this year after the ANC-led government’s plan to increase VAT fell through.

The VAT decision was rejected by the ANC’s coalition partners and opposition parties, prompting the switch to a GFL hike to partially make up for the budget shortfall.

The three costs behind South Africa’s petrol price

South Africa’s petrol price calculation can be broadly divided into three main elements – basic input costs, margins, and taxes.

Basic input is the single largest contributor, referring to the costs involved with procuring, importing, transporting, and storing oil.

These costs are mainly influenced by the international oil price and the US dollar/rand exchange rate, and currently add R11.50 to the petrol price.

This works out to 53.3% of the R21.59 per litre inland price for unleaded 95 as of August 2025.

Taxes are the second biggest contributor, with the GFL adding R4.01 per litre while the RAF levy adds R2.18 per litre.

Each litre is also subject to a 4c per litre customs and excise duty, and a 14c per litre carbon levy.

The cumulative cost of all these add-ons is R6.37, or 29.5% of the final retail value.

Lastly, there is the government’s allowable wholesale and retail margin on fuel, which makes up R3.74 (17.3%) of the fuel price.

Wholesalers are afforded 74c per litre, while retailers can add roughly R3.00 per litre – which is a profit margin in line with other industries.

All of this is to say that the “true” price of petrol is R15.24 per litre before taxes.

The following table shows a full breakdown of the various elements used in South Africa’s fuel price calculations.