The reduction in the petrol price will be welcomed by South Africans. Photo: iStock
South African motorists can breathe a sigh of relief with a drop in petrol and diesel prices from Wednesday.
The reduction will be welcomed by South Africans as they navigate a hostile economic climate while embarking on a much-needed festive break.
The Department of Mineral Resources and Energy last week announced both grades of petrol would decrease by 65 cents per litre while diesel would decrease by between R2.35 and R2.41 per litre.
It attributed the fuel price decreases to lower crude oil prices and the rand appreciating against the US dollar.
When the fuel price decrease kicks in, a litre of 95 Unleaded petrol will now cost R22.53 at the coast and R23.25 in Gauteng, while 93 Unleaded will now retail at R22.79.
The wholesale price of 50ppm diesel will decrease to R21.28 at the coast and R21.99 inland, but this excludes the retail margins which differ between outlets.
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South Africa’s fuel price is comprised of many different elements, some of which make fuel in the country more expensive than in neighbouring countries to which South Africa exports.
This includes the General Fuel Levy (GFL), the Road Accident Fund (RAF) levy, Basic Fuel Price (freight and insurance costs, cargo dues, storage, and financing), wholesale and retail margins, and distribution and transport costs
First National Bank (FNB), In its analysis of the fuel price trend in 2023, explained within the total price of fuel domestically, taxes and levies make up 31%, with the general fuel levy and Road Accident Fund levy accounting for the largest portion.
The South African Government receives revenue of R95 billion from the general fuel levy, which is used to fund public services.
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