Ameer Randolph
South Africa has seen significant fluctuations in fuel prices over the past year, with prices surging in February and March due to increasing crude oil costs and a weakening rand. In April, petrol prices increased by R0.30 per litre, while diesel prices decreased slightly by R0.15. In June and July, petrol prices rose again, prompting public outcry. However, in September 2024, the Department of Mineral Resources and Energy announced a price drop of 92 cents per litre for petrol and diesel, providing some relief to motorists and consumers. While South African fuel prices are generally higher than those of its African neighbours, the recent drop in fuel prices has been attributed to a decline in international crude oil prices and a stronger rand against the US dollar.
| Characteristics | Values |
|---|---|
| Fuel Price Calculation Factors | Slate Levy (SL), General Fuel Levy (GFL), Road Accident Fund Levy (RAF) |
| General Fuel Levy (GFL) | 16 cents per litre for petrol, 15 cents per litre for diesel |
| Slate Levy (SL) | A self-adjusting mechanism to address daily differences in petrol prices; applicable when the Slate account is in a negative balance |
| Road Accident Fund Levy (RAF) | Provides personal injury insurance to all drivers (except those labelled negligent) in accidents |
| Average Fuel Price Increase Since January 2000 | 335.98%; Petrol 95 experienced the biggest increase at 368%, while Diesel 50ppm grew by 51% since 2008 |
| Fuel Price in October 2024 | Decreased by R1.14 per litre; Petrol prices remain above R20.00 per litre |
| Fuel Price in September 2024 | Decreased by 92 cents per litre for 93 and 95-octane fuels; Diesel prices dropped by 79 cents for the 0.05% sulphur variant and 105 cents for the 0.005% variant |
| Fuel Price Comparison in Africa | South Africa generally has higher fuel prices than its African neighbours except for Zimbabwe |
| Fuel Price Ranking Globally | South Africa is not in the top 10 most expensive countries for fuel |
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What You'll Learn
Fuel price calculations
Fuel prices in South Africa are calculated based on five key elements:
Slate Levy (SL)
The Slate Levy is a self-adjusting mechanism used by the South African government to manage daily fluctuations in petrol prices. It takes into account over-recoveries (when consumers pay too much) and under-recoveries (when consumers pay too little), with any differences recorded in a Slate account. The Slate Levy is applicable when the account has a negative balance, indicating more under-recoveries than over-recoveries during the review period.
General Fuel Levy (GFL)
The General Fuel Levy is a tax applied to every litre of petrol sold in South Africa and is administered by the National Treasury. 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 adjustment.
Road Accident Fund Levy (RAF)
The Road Accident Fund Levy refers to South Africa's state insurer, the Road Accident Fund. It provides personal injury insurance to all drivers, except those deemed negligent, in the event of a road accident.
Other factors
In addition to these levies and taxes, fuel prices in South Africa can be influenced by various factors, including:
- International oil prices: The cost of crude oil in the global market can impact the base price of petrol and diesel.
- Rand-dollar exchange rate: As oil is traded in US dollars, the strength of the South African rand against the dollar can affect fuel prices. A weaker rand may lead to higher fuel prices.
- Distribution margins: The costs incurred by fuel wholesalers and retailers, including transportation and storage, can influence the final price at the pump.
- Regional variations: Fuel prices can vary across different regions of South Africa due to factors such as local taxes, transportation costs, and competition among fuel retailers.
Fuel Cost Calculators
To help individuals and businesses estimate their fuel expenses, online tools like the V3Cars Fuel Cost Calculator are available. These calculators consider factors such as driving distance, fuel type (petrol/gas or diesel), fuel efficiency (mileage), and local fuel prices to provide personalised estimates. They can be particularly useful for budgeting and trip planning, although actual fuel costs may vary due to factors like driving conditions and traffic congestion.
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General Fuel Levy (GFL)
Fuel prices in South Africa are generally higher than in neighbouring countries, except for Zimbabwe. Botswana, for example, benefits from lower prices as it imports all of its petrol from South Africa and does not have to pay the same tax duties. South Africa's fuel price is influenced by several factors, including the Rand/US Dollar exchange rate and international petroleum prices.
The General Fuel Levy (GFL) is a tax added to every litre of petrol sold in South Africa. It is a significant portion of the total fuel tax levied in the country and is a major source of government revenue, contributing around 5% of all taxes collected in South Africa. In 2023, the GFL was R3.96, which represented about 17% of every litre of petrol sold. The revenue generated from the GFL goes into the general revenue account, and the government can use it for any purpose it determines.
The GFL is adjusted annually to fund general government expenditure programmes. In 2017, the levy increased by 30 cents, and in 2018, national fuel levies went up by 52 cents a litre, with the total GFL and RAF levy standing at R5.30 per litre. In 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, effective June 4, 2025. This adjustment was the first in three years and was attributed to inflationary pressures.
While the GFL is a significant contributor to fuel prices in South Africa, it is not the only levy imposed at the pump. The Road Accident Fund (RAF) levy, for example, is another significant component of the total fuel tax. These regulated levies have been the main factor driving fuel price hikes, with retail margin, RAF levy, and transport cost components increasing significantly over the years.
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Road Accident Fund Levy (RAF)
Fuel prices in South Africa have been a concern for businesses and fleet managers, as they are one of the top expenses to consider. In the last five months, South Africans have enjoyed a decrease in petrol prices, including a reduction of R1.14 per litre in October 2024. However, prices remain above R20.00 per litre, and South Africa is now among the 50 most expensive countries for fuel.
The South African government includes various components in its fuel price calculations, one of which is the Road Accident Fund Levy (RAF). The RAF is a South African state insurer that provides liability and collision insurance coverage to all drivers in South Africa, except those deemed negligent. It covers personal injury and death insurance for victims of motor vehicle accidents and their families. The RAF does not cover property damage, such as damage to vehicles, buildings, or the contents of a vehicle.
The RAF collects insurance premiums through a levy on motor vehicle fuel, which is a type of tax. The levy is measured in cents per litre of petrol and diesel fuel sold in South Africa and is part of the general fuel tax regulated by the government. The National Treasury sets the fuel levy per litre annually, and the South African Revenue Service ("SARS") administers the collection of the levy. The RAF requests an increase in the fuel levy annually, based on its projected costs for the coming year. However, the full extent of the requested increase is rarely granted, as the National Treasury has historically operated on a pay-as-you-go basis rather than aiming to fully fund the RAF.
The RAF's mandate is to rehabilitate and compensate individuals injured due to negligent driving and to promote road safety in South Africa. It covers both citizens and foreigners involved in accidents on South African roads. To claim from the RAF, individuals must submit a claim within three years of the accident if the responsible party is known, or within two years if unknown. The RAF investigates the claim's legitimacy and may offer an early settlement, which may be a small percentage of the potential full compensation.
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Fuel price fluctuations
Fuel prices in South Africa have been fluctuating significantly over the past year, impacting consumers and businesses alike. These fluctuations are influenced by both local and international economic factors, including changes in crude oil prices and currency exchange rates.
At the beginning of 2024, South Africans experienced a welcome decrease in fuel prices, with a reduction of over R2 per litre for both petrol and diesel. However, this relief was short-lived as prices surged again in the following months due to increasing crude oil prices and a weakening Rand against the US Dollar. The volatile trend continued, with mixed adjustments throughout the year, leading to public outcry and calls for government intervention.
In September 2024, there was a notable drop in fuel prices, providing much-needed relief. The Department of Mineral Resources and Energy announced a reduction of 92 cents per litre for petrol and up to 105 cents for diesel. This decrease resulted from a combination of factors, including a decline in international crude oil prices and a stronger Rand.
South African fuel price calculations take into account several elements, such as the Slate Levy, which addresses daily over-recoveries and under-recoveries, the General Fuel Levy, a tax added to each litre of petrol, and the Road Accident Fund Levy, which provides personal injury insurance to drivers in the event of an accident.
Compared to other African countries, South African petrol prices are generally higher, with the exception of Zimbabwe and a few other nations. The unpredictable nature of fuel price fluctuations in South Africa poses challenges for businesses, especially those managing fleets, as fuel costs remain a primary expense. As a result, organisations are seeking ways to minimise the financial impact of these volatile fuel prices.
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Fuel price compared to other countries
South Africa's fuel prices are determined by five elements, including the Slate Levy, the General Fuel Levy, and the Road Accident Fund Levy. In June 2025, the Minister of Finance announced an increase in the General Fuel Levy by 16 cents per litre for petrol and 15 cents per litre for diesel. This adjustment was the first in three years and was attributed to inflationary pressures.
Compared to other countries, South Africa's fuel prices are generally higher than those of its African neighbours, with the exception of Zimbabwe. Botswana, for instance, enjoys lower fuel prices at $1.10 per litre since it does not have to pay the same tax duties as South Africa. Namibia has the lowest fuel price in the region at $1.09 per litre. As of February 2024, South Africa ranked 24th in Africa for fuel prices, with the Central African Republic, Zimbabwe, Senegal, and Morocco having higher prices.
While South Africa has historically been among the cheapest countries for fuel prices, a rise above the R23.50 per litre mark would place it in the top 50 most expensive countries. As of October 2024, South Africa experienced a reduction in fuel prices, with petrol prices dropping below R20.00 per litre. However, the country's fuel prices have risen significantly since 2000, with Petrol 95 experiencing a 368% increase.
Fuel prices vary globally due to factors such as a country's economic status and oil production capacity. Richer countries tend to have higher fuel prices, while poorer countries and oil-producing nations often have significantly lower prices. An exception to this trend is the United States, which is economically advanced but maintains low gas prices. The retail price of gasoline differs across countries due to varying taxes and subsidies imposed on international petroleum prices.
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Frequently asked questions
As of October 2024, petrol prices in South Africa are above R20.00 per litre. In the last year, fuel prices in the country have fluctuated significantly, with a decrease of over R2 per litre at the start of 2024, followed by price surges in February, March, and April. In September 2024, the Department of Mineral Resources and Energy announced a price drop of 92 cents per litre for petrol, providing some relief to consumers.
South African petrol prices are generally higher than its African neighbours, except for Zimbabwe. As of February 2024, South Africa was ranked 24th out of 54 African countries in terms of petrol prices, with the Central African Republic, Zimbabwe, Senegal, Morocco, and Seychelles having higher prices. If the price rises above R23.50 per litre, South Africa will be among the top 50 most expensive countries for fuel worldwide.
Fuel prices in South Africa are influenced by both local and international economic conditions. Internationally, crude oil prices and the exchange rate of the Rand against the US Dollar play a significant role. Domestically, the General Fuel Levy (GFL), a tax added to each litre of petrol, and the Road Accident Fund Levy (RAF), which provides personal injury insurance to drivers, are key factors in determining fuel prices.
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