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How the price of fuel is made up in South Africa
August 6, 2019

Huge increase in fuel tax in past decade

The General Fuel Levy is a tax charged on every litre of fuel sold in South Africa. The money collected through this tax is administered by the National Treasury and is treated as a general tax and not, as some people may think, for road-related expenses.

Money collected through the Road Accident Fund Levy is used to fund the Road Accident Fund, which uses the money to compensate victims of road accidents.

The difference between inland and coastal fuel prices is mainly due to costs for transporting the fuel from depots at the coast to inland outlets.

Levies now represent more than 40% of the price of fuel. Total levies have increased more than 200% from R1.76 a litre in 2008 to R5.77 a litre in July 2019.

Tax on petrol has grown from R1.27 in 2008 to R3.52 in July 2019. Contributions to the Road Accident Fund have increased from R0.45 to R1.98 over the same period. An additional Carbon Tax levy has been added to the fuel price. It is currently only nine cents on petrol and 10 cents on diesel, but like all levies, it is sure to increase over time.