South Africa has one of the highest prices for petrol in the world, because of its low level of refining capacity and high transport costs. The price of petrol in South Africa is R25.43 per litre, depending on the brand.
When do fuel prices go up in South Africa?
Fuel prices in South Africa are determined by the international crude oil price and the rand/US dollar exchange rate. The recent hike in fuel prices results from a weakening rand, which has lost over 10% of its value against the US dollar since January 2018.
The Central Energy Fund (CEF) is responsible for setting fuel prices. Because of an increase in international oil prices, the CEF increased fuel prices by R1.00 per litre on 1 April 2018. Petrol and diesel now cost R14.92 per litre and R13.02 per litre respectively – an increase of about 10%.
How does petrol affect South Africa’s economy?
Petrol is the most important commodity in South Africa. Individuals, industry and agriculture use it. It is also a major export product and contributes to the country’s balance of payments. Petrol is a significant contributor to South Africa’s balance of payments because it exports petrol to other countries for profit. The country imports petrol for its own use, which leads to a negative trade balance.
