South Africa’s fuel prices are on the rise. How do SA fuel prices compare to the rest of the world? To find out, we calculated petrol fuel prices in South Africa and then compared them to prices of leading countries. Here’s what we found.
How are petrol prices calculated?
The current fuel prices around the world are quite high. South African petrol prices, in particular, seem to be increasing regularly but who controls the price? The calculation of petrol prices is a complicated process. The South African government determines the petrol retail price every month. The price is calculated every first Wednesday of the month with help from the Central Energy Fund and the Department of Energy.
The cost of petrol prices per litre comes from many sources. Generally, the info is taken from external and internal factors that affect the price of fuel. The factors include the exchange rate of the dollar vs the rand (external factors) and factors such as the cost of transport and tax (internal factors). The petrol prices for the month will therefore be determined after the government and key entities calculate these costs.
How does the petrol price in South Africa, compare to the rest of the world?
As of June 2022, the fuel price stands at R 19.36 per litre. According to data taken from Bloomberg, South Africa’s cost of fuel ranks 20th alongside 60 leading countries. The data is calculated by taking the average cost of a litre per fuel for each country.
The pricing of fuel is the same on the international market but it goes up for each country depending on its taxes and subsidies. Richer countries on the list tend to have higher fuel prices, while the poorer countries have quite a price drop. The United States, despite being one of the richest countries in the world, has had relatively low fuel prices compared to other wealthy countries, although this has been recently rising due to the economic sanctions placed on Russia.
According to the data, South Africa pays a lot more than other African countries, with countries such as Mozambique and Botswana receiving their fuel cheaper per litre. The year could see some lower new fuel prices as the government works on ways to reduce the costs.
The price of fuel will always be unstable given the political events in the world and the rate of taxes. The best way to ensure you can keep up with the fluctuations is to keep track of the costs and budget accordingly per month. Earn-A-Car makes budgeting for fuel simpler as we offer fixed and affordable monthly installations for your car payments, as well as a cash back on each installment which you can use towards your fuel costs.