South African motorists should pay R12.74 for a litre of petrol

South African motorists should pay R12.74 for a litre of petrol. However, when considering all taxes, they pay between R27.24 and R36.08.

On Tuesday, 04 March 2025, the Department of Petroleum and Mineral Resources published this month’s official fuel price adjustments.

Prices will be cut by 7 cents per litre for 93 and 95 petrol and between 18 and 24 cents per litre for diesel.

This means that 93 Petrol will cost South Africans R22.09 per litre from Wednesday, and 95 Petrol will cost R22.34.

The wholesale price for Diesel 0.05% will decrease to R20.16, and the wholesale price for Diesel 0.005% will decline to R20.21.

Although the slightly lower fuel prices will make many motorists happy, people often forget how much tax the government takes.

Total taxes on petrol are around R9.58, meaning that 43.2% of the price paid for petrol goes directly to covering taxes.

The total taxes on diesel are around R9.27, meaning 45.3% of the price paid for diesel goes directly to covering taxes.

These taxes include a general fuel levy that goes to the National Treasury and to the Road Accident Fund (RAF) to fund its operations.

There are also customs and excise duties, a slate levy, a petroleum products levy, and a carbon tax levy.

Without taxes, unleaded 95 petrol would cost around R12.74 per litre, and diesel would cost around R10.97 per litre.

However, this only tells part of the story. The money South Africans use to buy petrol and diesel is heavily taxed before it appears in their bank account.

If a taxpayer falls within the 18% tax bracket, the effective tax rate paid is also 18%. For this individual to afford 1 litre of petrol, he would need an income of R27.24.

From the total income of R27.24, the individual would pay R14.50 in taxes on a litre of petrol, including the personal income tax and all the taxes levied on fuel.

If a taxpayer falls within the 36% tax bracket, the effective tax rate paid is much higher. For this individual to afford 1 litre of petrol for R22.34, he would need an income of R30.44.

For the income of R30.44, the individual would pay R17.34 in taxes to buy a litre of petrol, including the personal income tax and all the taxes levied on fuel.

A person falling in the highest tax bracket of 45% pays an even higher effective tax rate. For this person to be able to afford 1 litre of petrol, he would need an income of R36.08.

From the total income of R36.08, the individual would pay R22.98 in taxes, being both the personal income tax and all the taxes levied on fuel.

All taxes on buying 1 litre of petrol

All taxes on buying 1 litre of diesel