Fuel prices: where does the money go?

Petroleum companies, Shell and Sasol have provided cost breakdowns showing how much each aspect of the manufacturing and distribution of petrol affects the final price of 95 Octane in Gauteng.

Following the latest fuel price increase (3 April 2012), petrol in Gauteng is currently R11.94 per litre for 95 Octane, and R11.77 for 93 Octane.

The largest contributor to price is the Basic Fuel Price (BFP), which “reflects import costs of fuel from international markets, including costs to ship the product to South Africa and coastal storage of stock,” Sasol says.

This contributes 694.570c per litre towards the final price, according to Sasol (694.869c per litre according to Shell) – accounting for 58.8% of the final fuel price.

The second-largest cost involved is the variety of charges the government applies to fuel in South Africa.

These include:

  • Petroleum products levy (0.150c per litre);
  • Pump rounding (0.300c per litre);
  • An incremental inland transport recovery levy (3.000c per litre);
  • Customs duty collection (4.000c per litre);
  • Demand side management levy (10.000c per litre);
  • The Road Accident Fund charge (88.000c per litre);
  • And Fuel Tax (197.500).

Government charges 302.950c per litre, or 25.1 percent of the total retail cost of fuel.

The remaining 16.4 percent of the retail price is accounted for by domestic costs, which include transport and distribution (47.8.000c per litre), and margins made by wholesalers and retailers (144.300c per litre).

Sasol petrol price breakdown
Sasol petrol price breakdown

Related Links:

Sasol petrol price breakdown infographic

Shell petrol price breakdown

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Fuel prices: where does the money go?