The petrol price is up 32% since 2012 – even though right now a barrel of oil costs almost exactly what it did then
- Petrol in SA is 32% more expensive today than what it was in 2012 - despite the Brent crude oil price roughly being the same.
- The difference is almost wholly attributable to taxes on fuel which grew by more than 90%.
- When margins, retail income and distribution cost are included, 55% of the fuel price is unrelated to the oil price itself.
- For more go to Business Insider.
The South African petrol price is 32% more expensive than what it was in October 2012, despite the price of Brent Crude oil in rand terms being roughly the same.
South Africa does not have its own natural oil reserves and is, therefore, dependent on oil imports to meet local demand.
According to ExchangeRates.org, South Africa paid R938 per barrel of oil on October 1 2012, compared to the R907.94 it paid for a barrel of oil on Tuesday.
Also read: Treasury wants to deregulate the petrol price - but an analyst believes this will not bring cheaper fuel, only more price volatility
This means the petrol price increased by 32.9% since 2012.
The increase is almost entirely attributable to the increase in fuel taxes, which now contributes 34% of the fuel price.
The direct tax on petrol grew from R1,97 in 2012, to R3,52 in 2019, and the Road Accident Fund taxes from R0,88 to R1,98.
Also read: PetroSA says its Mossel Bay plant will run out of gas by December 2020 - placing 1,500 jobs at risk
In June, the national treasury also introduced a 9c carbon tax on fuel which does not go towards funding ‘green’ projects, but is redirected towards the national budget.
Combined, the taxes on fuel grew from R2,89 in 2012 to R5,63 in 2019 - a growth of 94.7%.
When related fuel costs such as margins, retail income and distribution cost are included, 55% of the South African fuel price is unrelated to the oil price itself.
Also from Business Insider South Africa:
- Thanks to a five-year tax battle we found out who gifted a SA model R150 million: Lebanon’s prime minister
- Sygnia CEO Magda Wierzycka just gave her husband R215 million worth of shares – in a ‘restructuring of their personal interests’
- Woolworths is promising more perks for its high-spending VIP club of 340,000 people – and travel discounts are on the cards
- PetroSA says its Mossel Bay plant will run out of gas by December 2020 - placing 1,500 jobs at risk
- The Gautrain station in Sandton is getting its toilets back – but coffee-drinkers and shop owners are on their own