Rajan Wilcox
The price of fuel in South Africa has been a concern for businesses and fleet managers, with prices rising by 335.98% since January 2000. As of October 2024, the price of petrol in South Africa is around R21.05 per litre for 95 octane fuel, with a recent reduction of R1.14 per litre. The price of fuel is determined by various factors, including global oil market dynamics, currency fluctuations, local economic policies, and South Africa's fuel price calculation, which considers the Slate Levy, General Fuel Levy, and Road Accident Fund Levy. The General Fuel Levy is set to increase by 16 cents per litre for petrol in June 2025, impacting costs for motorists and consumers.
| Characteristics | Values |
|---|---|
| Current price of petrol per litre in South Africa | R20.73 (as of 30 September 2024) |
| Global rank of South Africa in terms of fuel prices | 66th out of 157 countries |
| Price of petrol per litre in neighbouring countries | Namibia: R18.50; Botswana: R19.00 |
| Anticipated decrease in petrol prices | ULP93: R1.18 per litre; ULP95: R1.26 per litre |
| Anticipated decrease in diesel prices | R1.10 per litre |
| Increase in the General Fuel Levy (GFL) | Petrol: 16 cents per litre; Diesel: 15 cents per litre |
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What You'll Learn
- Fuel prices in South Africa are unpredictable
- The General Fuel Levy (GFL) is a tax added to each litre of petrol
- South Africa ranks 66th for most expensive fuel prices
- Petrol prices decreased by 92 cents per litre in September 2024
- The price of petrol in South Africa is influenced by the global oil market
Fuel prices in South Africa are unpredictable
The unpredictability of fuel prices in South Africa is driven by various factors, including global oil market dynamics, currency fluctuations, and local economic policies. For instance, the recent drop in fuel prices resulted from a combination of lower international crude oil prices and a stronger Rand against the US Dollar, leading to reduced import costs for crude oil and petroleum products. On the other hand, factors such as inflationary pressures can lead to increases in fuel prices, as seen in the announcement by the Minister of Finance to raise the General Fuel Levy by 16 cents per litre for petrol in June 2025.
South African fuel price calculations consider several elements, including the Slate Levy, which addresses daily over-recoveries and under-recoveries, and the General Fuel Levy, a tax applied to each litre of petrol sold. The Road Accident Fund Levy, which provides personal injury insurance to drivers in the event of an accident, also influences fuel pricing. These factors contribute to the unpredictable nature of fuel prices in the country.
The impact of unpredictable fuel prices is significant for fleet managers, who must adapt their cost management strategies. Additionally, South Africa's fuel prices are relatively high compared to neighbouring countries like Namibia and Botswana, which have lower taxation, import costs, and more stable currencies. This disparity affects South Africa's competitiveness and highlights the challenges posed by unpredictable fuel pricing.
To mitigate the financial burden of fluctuating fuel prices, South Africans can utilise advanced tools and stay updated on the latest fuel price changes. Understanding global and local economic conditions that influence fuel pricing can help prepare for potential increases or decreases. While the recent drop in fuel prices is positive, the overall trend of rising fuel costs remains a key concern for individuals, businesses, and the broader economy in South Africa.
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The General Fuel Levy (GFL) is a tax added to each litre of petrol
Fuel prices in South Africa are determined by several factors, including international fuel prices, the Rand-US Dollar exchange rate, and various taxes and levies. One such levy is the General Fuel Levy (GFL), which is a tax applied to every litre of petrol sold in the country. The GFL is one of the two main taxes that make up the cost of fuel in South Africa, the other being the Road Accident Fund (RAF) levy.
The GFL is an annually adjusted tax used to fund general government expenditure programmes. While the levy remains constant throughout the year, the price of fuel is adjusted monthly, taking into account fluctuations in international fuel prices and exchange rates. In 2023, the GFL was R3.96 per litre, representing approximately 17% of every litre of petrol sold in South Africa. The RAF levy, on the other hand, was priced at R2.18 per litre, contributing around 11% to the cost of each litre of fuel sold. Combined, these two levies generate significant revenue for the government, with the GFL alone contributing approximately R90 billion.
The GFL rate is set by the Treasury, and any increases are typically announced during the Finance Minister's annual Budget speech in February, coming into effect in April. For instance, in 2018, the national fuel levies increased by 52 cents a litre, with the combined GFL and RAF levy standing at R5.30 per litre. More recently, in June 2025, the Minister of Finance announced a further increase in the GFL by 16 cents per litre for petrol and 15 cents per litre for diesel, citing inflationary pressures as the reason for the hike.
The GFL has been criticised for disproportionately affecting consumers with lower incomes, particularly those relying on older model cars or public transportation. While modern cars are more fuel-efficient, thereby reducing the impact of levy increases, older cars and public transport vehicles often bear the brunt of higher fuel costs. Additionally, there have been calls for better allocation and accountability of GFL funds to ensure they are used effectively and not lost to misappropriation or corruption.
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South Africa ranks 66th for most expensive fuel prices
South Africa has some of the most expensive fuel prices per litre among all countries. Ranked 66th out of 157 countries, South Africa's fuel prices are higher than those of most of its African neighbours, except for Zimbabwe. While South Africans enjoyed a decrease in petrol prices in the last five months, including a reduction of R1.14 per litre in October 2024, prices remain above R20.00 per litre, which is a concern for businesses. The price of fuel in South Africa is determined by various factors, including the basic fuel price, wholesale and retail margins, distribution costs, and taxes such as the General Fuel Levy.
The basic fuel price is the cost of purchasing petrol from an international seller, including transportation and insurance costs. Wholesale margins are the charges levied by refineries for producing and exporting petrol, while retail margins are the additional costs imposed by oil companies when selling petrol at gas stations. The Department of Energy in South Africa is responsible for setting the retail margins. Distribution costs also play a role in the final price of fuel.
The General Fuel Levy (GFL) is a tax added to every litre of petrol sold in South Africa. In June 2025, the Minister of Finance announced an increase in the GFL by 16 cents per litre for petrol and 15 cents per litre for diesel, citing inflationary pressures as the reason for the hike. This was the first adjustment in three years and is expected to impact consumers and the automotive industry.
South Africa's fuel prices are also influenced by the value of the rand against other currencies, particularly the US dollar. The depreciation of the rand against the dollar contributes to increased import costs for crude oil and refined products, leading to higher domestic fuel prices. Political developments and oil prices can also impact fuel prices in South Africa. Experts speculate that the Trump administration's policies and the focus on domestic issues in the US could lead to short-term economic growth but increase inflationary pressure, affecting South Africa's ability to control inflation and reduce interest rates.
While South Africa currently ranks 66th for the most expensive fuel prices, there are concerns that the country could move into the top 50 if fuel prices continue to rise. As of late 2024, fuel prices in South Africa were above R20.00 per litre, and a further increase could push the country higher in the rankings. South Africa's fuel prices have been rising steadily, with an overall increase of 335.98% since 2000. If South Africa's fuel prices rise above R23.50 per litre, the country will be among the top 50 most expensive countries for fuel, a significant shift from its previous position near the cheapest countries.
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Petrol prices decreased by 92 cents per litre in September 2024
South Africa has seen significant fluctuations in fuel prices over the past year. These changes reflect both local and international economic conditions. After a brief decrease in fuel prices at the start of 2024, prices surged again in February and March due to increasing crude oil costs and a weakening Rand.
In June and July, petrol prices rose again, prompting public outcry and calls for government intervention. In response, on September 4, 2024, the Department of Mineral Resources and Energy announced a significant reduction in fuel prices. Petrol prices decreased by 92 cents per litre for both 93-octane and 95-octane fuels. Diesel prices also declined, dropping by 79 cents for the 0.05% sulphur variant and by 105 cents for the 0.005% variant.
These adjustments resulted from a decrease in the average Brent Crude oil price, which fell from $83.55 to $78.54 per barrel. Additionally, the Rand appreciated against the US Dollar, with an average increase from 18.23 to 18.05 Rand per USD. This combination of factors led to lower import costs for crude oil and petroleum products, ultimately benefiting South African consumers who had faced rising costs in recent months.
The price drop in September provided much-needed relief to motorists and consumers in South Africa. The latest data indicates that the price of petrol in South Africa as of October 2024 stands at approximately R21.05 per litre for 95-octane fuel. Despite this recent decrease, the price of petrol still remains above R20.00 per litre, which is a concern for businesses and fleet managers, who have had to adapt their approaches to cost management due to unpredictable fuel price fluctuations.
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The price of petrol in South Africa is influenced by the global oil market
The price of petrol in South Africa is influenced by various factors, including the global oil market, local currency stability, and government policies. As of October 2024, the price of petrol in the country was approximately R21.05 per litre for 95-octane fuel, following a 92-cent price drop in September. This reduction was attributed to lower international crude oil prices and a stronger Rand against the US Dollar.
The global oil market plays a significant role in determining petrol prices in South Africa. The cost of crude oil in the international market directly impacts the price at the pump. For instance, the price drop in September 2024 was a result of a decrease in the average Brent Crude oil price from $83.55 to $78.54 per barrel. Additionally, factors such as escalating conflicts in oil-producing regions, like the Middle East, can pose risks to the supply of crude oil, leading to fluctuations in its price and subsequent effects on petrol prices in South Africa.
Currency exchange rates, particularly between the South African Rand (ZAR) and the US Dollar (USD), also influence petrol prices in the country. A stronger Rand can lead to lower fuel prices, as it makes importing oil cheaper for South Africa. On the other hand, a weaker Rand can result in higher fuel prices as the cost of imports increases.
Government policies and taxes can also have a significant impact on petrol prices in South Africa. The General Fuel Levy (GFL) and the Road Accident Fund Levy (RAF) are two of the largest levies on fuel in the country. Adjustments to these levies, often driven by inflationary pressures or changes in government revenue needs, can lead to increases or decreases in the retail price of petrol.
In comparison to other countries, South Africa's petrol prices are relatively high within Africa. As of February 2024, South Africa ranked 24th out of 54 African countries in terms of petrol prices. However, when compared globally, South Africa's petrol prices are closer to the average. As of September 30, 2024, the global average price of gasoline was $1.28 per litre, while South Africa's price was slightly lower at R20.73 per litre (approximately $1.22).
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Frequently asked questions
As of October 2024, the price of petrol in South Africa is approximately R21.05 per litre for 95 octane fuel. In September 2024, the price was R20.73 per litre.
South Africa ranks 66th overall (out of 157 countries) with the most expensive fuel prices per litre. The average price of gasoline worldwide is $1.28 US dollars per litre (R22.30).
The price of fuel in South Africa is influenced by global oil market dynamics, currency fluctuations, and local economic policies. The strength of the Rand against the US Dollar, international crude oil prices, and taxation, import costs, and local currency stability also play a role.
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