Over R1,200 petrol price pain for South Africans

South African motorists filling up their tanks in 2025 are paying a staggering R1,226 more than they would have in 1995, highlighting the relentless rise in fuel prices over the past 30 years.

The latest petrol price adjustments saw an increase of 82 cents per litre for both 93 and 95 unleaded petrol in February 2025, while diesel prices rose between R1.01 and R1.05 per litre.

As a result, the inland price of 93 unleaded petrol now stands at R22.16 per litre, up from R21.34 in January.

To put this into perspective, data from Stats SA shows that in 1995, inland motorists paid just R1.86 per litre for 93 unleaded petrol.

This represents a price increase of R20.30 per litre or a staggering 1,091.4% over 30 years—almost three times the inflation rate of 416% over the same period.

Another major factor driving the high cost of fuel is taxation. For much of the last two decades, South African motorists have endured fuel tax hikes far exceeding inflation.

Currently, nearly a third of every litre of petrol purchased goes toward government levies, with the fuel tax accounting for roughly 18% and the Road Accident Fund (RAF) levy making up around 10% of the total price.

Since January 2000, fuel tax contributions have surged by 335.98% for petrol users and 400.66% for diesel users. RAF contributions have seen even steeper hikes, increasing by over 1,400% for petrol and an astonishing 2,016% for diesel.

South Africa’s regulated fuel prices are determined by a mix of external and internal factors:

• External factors include the international price of oil, the US dollar to the rand exchange rate, and additional costs like insurance, storage, and transportation.

• Internal factors encompass local retail and oil company marketing margins, transport costs, and government-imposed taxes and levies.

In early 2025, rising global petrol prices and a weakening rand combined to cause an under-recovery, leading to higher prices at the pumps.

The February increase marks the fourth consecutive month of petrol price hikes and the second for the year.

Looking ahead, early indicators for March 2025 suggest further pain at the pumps, with under-recoveries ranging between 29 and 40 cents per litre for petrol and 19 to 27 cents per litre for diesel.

Although global oil prices dipped in the past week, they remain higher than the low levels seen at the start of the year, keeping fuel costs elevated.

How much motorists are paying per tank of petrol: 1995 vs 2025

To illustrate just how much petrol prices have climbed, BusinessTech calculated the cost of filling an average tank in 1995 versus 2025.

The average tank size was derived from South Africa’s top-selling cars and bakkies in 2024, which range from 37 litres (Suzuki Swift, Toyota Starlet) to 80 litres (Toyota Hilux, Ford Ranger), with a weighted average of 60.4 litres.

• 1995: Filling a 60.4-litre tank with 93 unleaded petrol cost motorists R112.34.
• 2025: The same tank now costs R1,338, an increase of R1,226 over 30 years.

However, when adjusting for inflation (416%), the petrol price should be around R9.60 per litre, translating to R579.84 per tank.

This means South Africans are effectively paying R646 more per tank than they would be if petrol prices had merely tracked inflation.

These estimates are based on the official February 2025 inland petrol price of R22.16 per litre for 93 unleaded, considering that only 87-octane and 93-octane fuel were available in 1995.