Government pockets more than a third of the petrol price you pay at the pumps

South Africans will pay a record-high price for fuel from Wednesday and the government will pocket more than a third of that.

Of the R16.02 ($1.16) motorists will pay for a liter for the 95-octane gasoline in the province of Gauteng, home to the economic and administrative capitals, taxes and levies account for R5.44.

In neighboring Botswana, unleaded gasoline costs about 8.54 pula ($0.82) and taxes account for 16% of the price.

The fuel price in South Africa, an oil importer, is heavily influenced by international crude costs and the rand, explaining part of the increase in pump prices so far this year.

Crude climbed 11% in June, while the rand weakened 7.6% to the dollar, the most among major currencies.

It’s now at R13.6332 against the greenback. But the rate of growth in fuel taxes and levies has outpaced inflation for at least the past six years.


Read: While petrol is at record highs, the Road Accident Fund is paying R1,666 to rent a single office chair

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