According to the Automobile Association of South Africa (AA), South African consumers are paying R5 a litre more for fuel in May 2021 when compared to May 2020.
“These increases come off the back of significant fuel price increases throughout the first few months of the year, which saw fuel prices reach record highs in April,” said the AA.
To put this into context: it reflects a 39% increase in inland prices for 93 Octane petrol when compared year-on-year.
To provide an overview of how the price of fuel is calculated in South Africa, the AA has built two infographics.
The graphics are based on inland prices for 93 petrol, and coastal prices for 95 petrol.
“The costs are calculated using May fuel price data, which incorporates the annual increases to the two main taxes paid on every litre of fuel – namely the General Fuel Levy and Road Accident Fund levy,” noted the AA.
It added that fuel prices in South Africa are determined by the following elements:
- General Fuel Levy (GFL)
- Road Accident Fund levy (RAF)
- Basic fuel price (including freight, insurance, cargo, storage, and financing costs)
- Wholesale and retail margins, and distribution costs
The inland costs for these elements are as follows:
- GFL – 23%/R3.93 per litre
- RAF – 13%/R2.18 per litre
- BFP – 42%/R7.15 per litre
- Transport, customs, retail margins, and secondary storage costs – 22%/R3.75 per litre
“Using the current data, filling a 50-litre tank of fuel inland (93 petrol) will cost R850.50, and R825.50 at the coast (95 petrol) – R249.50 more now than a year ago,” said the AA.
“The total levies combined in 2021 are expected to deliver around R126 billion to the government, with around R83 billion coming from the GFL and R43 billion coming from the RAF Levy.”
A breakdown of how South Africa’s petrol prices are calculated, as provided by the AA, is shown below.