Petrol prices in South Africa vs the world

Petrol prices are more affordable in South Africa than many other countries, despite hitting record high levels in recent years.

This is particularly evident when looking at how many litres the average household could buy on the average monthly salary – even though the price per litre is often higher in dollar terms.

Picodi.com examined the dynamics of petrol price changes worldwide in the first half of the year. The group looked at the actual price changes (in dollar terms), and tried to gauge the affordability levels in each country.

To give an indication of affordability, the group looked at how many litres of petrol could be bought on the average salary in each country.

The methodology used by Picodi included the latest wage data from national statistics offices and ministries and global petrol price indicators from GlobalPetrolPrices.com.

According to the group, petrol prices remained stable over the first six months across Africa, with most countries showing either no or less than a 10% change in price.

In South Africa, the average petrol price in June 2023 was R22.27, R1.19 more than in January (R21.08) or up 5.7%.

In dollar terms, South African petrol costs roughly $1.19 per litre – which is 17 US cents more than the Africa average.

“The lowest petrol prices can be found in Tunisia ($0.82/litre), Egypt ($0.37/litre) and Algeria ($0.34/litre),” said Picodi.

“On the other hand, the highest petrol prices have to be paid by drivers from Mauritius ($1.62/litre), Zambia ($1.46/litre), and Kenya ($1.32/litre).”

Affordability

The group further investigated how many litres the average wage can purchase in South Africa and compared it to different countries.

Of the nine African nations measured by Picodi, South Africa ranked as the top for petrol affordability, able to buy a total of 968 litres from the average monthly wage.

Algeria and Egypt also boast high numbers at 792 and 396, respectively.

StatsSA reported that the average wage in South Africa is R25,304 gross (R21,564 net monthly).

“This means that an average South African can buy 968 litres of petrol (1st out of 9 countries),” Picodi said.

This is slightly better than last year, where over the same period, the average wage could buy 865 litres (103).

This is what the petrol index in South Africa looked like in the last five years:

• 2019 – 1,215 litres
• 2020 – 1,345 litres
• 2021 – 1,237 litres
• 2022 – 865 litres
• 2023 – 968 litres

Globally, the three leaders in price are unchanged from previous years, including Algeria ($0.34/litre), Kuwait ($0.34/litre) and Iran ($0.35/litre).

Hong Kong also continues to be the most expensive country, with a litre of petrol costing $2.99.

“In the global ranking of purchasing power, the podium belongs to the Gulf countries: with the average wage, the most petrol can be bought in Kuwait (7,222 litres), Qatar (6,839 litres), and the United Arab Emirates (4,611 litres),” reported Picodi.

On the other end of the spectrum, the Petrol Index looks the worst in these countries:

• Pakistan – 166 litres for the average wage
• Sri Lanka – 157 litres
• Cuba – 27 litres

Petrol outlook

First week month data from Central Energy Fund (CEF) shows that prices in August may see a cut in petrol prices.

The group reported a possible price drop in petrol of between 24 and 34 cents per litre for petrol, with diesel a potential increase of between 17 and 22 cents per litre.

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