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.<\/p>\n\n\n\n
On Tuesday, 04 March 2025, the Department of Petroleum and Mineral Resources published this month’s official fuel price adjustments.<\/p>\n\n\n\n
Prices will be cut by 7 cents per litre for 93 and 95 petrol and between 18 and 24 cents per litre for diesel.<\/p>\n\n\n\n
This means that 93 Petrol will cost South Africans R22.09 per litre from Wednesday, and 95 Petrol will cost R22.34.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Although the slightly lower fuel prices will make many motorists happy, people often forget how much tax the government takes.<\/p>\n\n\n\n
Total taxes on petrol are around R9.58, meaning that 43.2% of the price paid for petrol goes directly to covering taxes.<\/p>\n\n\n\n
The total taxes on diesel are around R9.27, meaning 45.3% of the price paid for diesel goes directly to covering taxes.<\/p>\n\n\n\n
These taxes include a general fuel levy that goes to the National Treasury and to the Road Accident Fund (RAF) to fund its operations.<\/p>\n\n\n\n
There are also customs and excise duties, a slate levy, a petroleum products levy, and a carbon tax levy.<\/p>\n\n\n\n
Without taxes, unleaded 95 petrol would cost around R12.74 per litre, and diesel would cost around R10.97 per litre.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
PIT Tax Bracket<\/strong><\/td>| Base Price<\/strong><\/td> | PIT<\/strong><\/td> | Fuel Levies<\/strong><\/td> | True Price Paid<\/strong><\/td><\/tr> | 18%<\/td> | R12.74<\/td> | R4.90<\/td> | R9.60<\/td> | R27.24<\/td><\/tr> | 26%<\/td> | R12.74<\/td> | R5.90<\/td> | R9.24<\/td> | R28.24<\/td><\/tr> | 31%<\/td> | R12.74<\/td> | R6.93<\/td> | R9.24<\/td> | R29.27<\/td><\/tr> | 36%<\/td> | R12.74<\/td> | R8.10<\/td> | R9.24<\/td> | R30.44<\/td><\/tr> | 39%<\/td> | R12.74<\/td> | R9.25<\/td> | R9.24<\/td> | R31.59<\/td><\/tr> | 41%<\/td> | R12.74<\/td> | R12.28<\/td> | R9.24<\/td> | R34.62<\/td><\/tr> | 45%<\/td> | R12.74<\/td> | R13.74<\/td> | R9.24<\/td> | R36.08<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n | All taxes on buying 1 litre of diesel<\/strong><\/h2>\n\n\n\n
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