The price of petrol in South Africa rocketed in price from R8.45 per litre at the coast in December 2010 to R16.30 in December 2019, according to a very interesting statistical analysis by James de Villiers, writing in Business Insider South Africa. This equates to a shocking 93% increase.
Business Insider reports that most of the South African price increase can be attributed to the weak rand, which fell from around R8 to the US dollar in 2010 to R14 today.
According to the article the taxes on fuel also took a leap and now make up 35% of the overall fuel price, compared to 28% 10 years ago.
These rises came in the face in a fall in the international price of benchmark Brent crude oil, which declined in price from US$90.40 a barrel in December 2010 to US$69.26 a barrel in December 2019. According to De Villiers, the Department of Energy’s own documentation shows that taxes on fuel increased by 131.6% going from R2.43 a litre in 2010 to R5.63 a litre 10 years later.
However, the article in Business Insider states that when levies and other handling fees are included then roughly 60% of the South African petrol price is not related to the price of the fuel itself. The report continued to say that if the fuel price was pegged to inflation then the coastal price of petrol would have been R12.48 a litre today and the diesel price would be R11.34 a litre.