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Here's how fuel costs in South Africa have changed over the last ten years.

Johannesburg – For the first time in history, South African petrol prices will exceed R20 per litre on Wednesday, December 1.

Fuel prices are rising at an unprecedented rate for a variety of reasons, but the main culprits are high international oil prices, a weak rand, and high taxes.

The rand has been lower than its current value of $16.15 per dollar against the US dollar, while Brent Crude oil has been more expensive than the $73.44 per barrel mentioned at the time of writing. But we've never had a weak rand and a strong oil price at the same time before. Annual hikes in fuel taxes are undoubtedly worsening the situation, but we'll get to that later.

The ultimate result, however, is that fuel prices have grown at a high rate in recent years, which becomes even more clear when we examine how gasoline prices have evolved over the last decade, as shown in the tables below:

*With thanks to the Automobile Association for providing this information.

The price of 93 Unleaded fuel in Gauteng has climbed by 91.8 percent in the previous ten years, 60 percent in the last five years, and 41% in the last year alone — despite prices being somewhat higher than last year's level, prior to the original Covid-19 oil price fall. According to inflationcalc.co.za, if we adjust the 2011 price for general inflation over the last decade, the current price should be R16.94.

We didn't include diesel in the charts because it's unregulated, therefore only wholesale pricing are available. However, in the ten years leading up to December 2021, the cost of a litre of 50ppm diesel grew from R10.33 to R17.37 (near the coast), and from R10.53 to R17.97 in the rural regions.

For your Hilux or Ranger's massive 80-litre tank, that represent 10-year gains of 68.1 percent and 70.6 percent, respectively.

What role do taxes play in high fuel prices?

As previously stated, annual increases in fuel levies and taxes are adding salt to the current fuel price wounds, as illustrated by a recent chart released by The Organization Undoing Tax Abuse (OUTA) – keep in mind that this chart compares November 2011 to 2021, and does not include the December increase.

Essentially, the price of petrol (as it docks at the wharf) has risen by 49%, from R6.29 to R9.37, while all other levies, taxes, retail margins, and so on have climbed by 126%. According to OUTA, the levy that goes to the beleaguered Road Accident Fund has climbed by 173 percent, while the gasoline levy has increased by 116 percent. As a result, taxes currently account for R6.11 of every litre of fuel pumped into a South African tank.

The latest rises, according to the Automobile Association (AA), underline the urgent necessity for an inquiry and recalculation of the present fuel pricing model.

"This price crisis is totally self-inflicted," according to the AA.

Oil prices have fallen from recent highs on the international market, with Brent Crude presently selling at $75 per barrel. The majority of this month's under-recovery is due to the rand's weakness against the US dollar, according to the association.

"These increases are significant and will definitely have significant negative consequences for already financially strapped customers," the AA added.

As the freight sector crumbles under the burden of yet another gasoline price spike – read more here – freight companies have also requested the government to act.

Source :://

Here’s how South African fuel prices have risen in the last 10 years https://www.iol.co.za/motoring/industry-news/heres-how-south-african-fuel-prices-have-risen-in-the-last-10-years-763589ae-7284-4683-983c-bd27fae90f0e

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Brent Crude Johannesburg South Africa South African

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