Business Insider SA

The petrol price nearly doubled in South Africa over the past decade, despite a decline in global oil prices.

The increase can be attributed to the weak rand and increasing taxes on fuel.

Taxes on fuel now make up 35% of the overall fuel price, up from 28% in 2010.

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The South African petrol price nearly doubled the past decade: from R8.45 per litre at the coast in December 2010, to R16.30 in December 2019.

This despite the international price of Brent crude oil declining from $90.40 a barrel in December 2010 to $69.26 a barrel in December 2019.

The increase in the petrol price can be attributed to the weak rand, which declined from around R8 to the US dollar in 2010, to R14 today, as well as higher taxes.

The department of energy’s own documentation shows that the taxes on fuel increased from R2.43 in 2010 to R5.63 in 2019, or a 131.6% increase.

Taxes on fuel now represent 35% of the overall fuel price, compared to 28% in 2010.

However, when levies and other handling fees are included, roughly 60% of the South African petrol price is not related to the price of the fuel itself.

If the fuel price was pegged to inflation, the coastal petrol price would’ve been R12.48 today, and the diesel price R11.34.

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