When does petrol price change in South Africa
The government controls and modifies the retail price of gasoline every first Wednesday of the month. On behalf of the Department of Mineral Resources and Energy, the Central Energy Fund (CEF) calculates the pricing of petroleum products (petrol, diesel, and illuminating paraffin) every day (DMRE). Averaging over a previous time period and applying it to the upcoming month is essentially what the monthly price change is. This implies that South Africa’s fuel prices are one month behind those of other countries.
The Base Fuel Cost (BFP)
The system’s connection to global markets was improved via the BFP formula, which is still in use today. The DOE is examining the BFP to make sure the presumptions employed are still valid and appropriate. It is advisable for the control mechanism to be connected to global markets if prices are to be regulated.
What Affects South Africa’s Fuel Prices
Monthly adjustments to fuel prices are made in South Africa based on both global and regional variables. The nation imports both crude oil and finished goods at a set price at the international level, including importation costs like shipping. This is one of the global factors.
How frequently do fuel prices fluctuate in South Africa?
This is sometimes referred to as the Basic Fuel Price, or B F P. When refining fuel locally, manufacturers want to undercut this price. Currently, the Basic Fuel Price accounts for about 35% of the cost of gasoline inland. In South Africa, the price of fuel fluctuates each month due to the BFP.
The source of South Africa’s gasoline
Nigeria ($2.14 billion), Saudi Arabia ($1.87 billion), Ghana ($506 million), the United Arab Emirates ($208 million), and the US ($114 million) are the main countries from which South Africa receives crude oil. Brazil ($81.4M), Spain ($45.1M), and Russia ($42.3M) had the three fastest-growing import markets for crude oil for South Africa between 2019 and 2020.
In South Africa, who controls the price of fuel?
The external factors—the product’s dollar price on international markets multiplied by the US$/R exchange rate—and internal factors—the cost of the product—are the two key elements that determine the prices of restricted petroleum products. The internal elements, include retail and oil firm marketing margins denominated in rands, transportation expenses, and taxes and levies
Fuel tax rates in South Africa
Taxes and levies make up, on average, 33.5% of the cost of a litre of fuel in South Africa. While the Slate Levy, which was added to the local gasoline pricing in 2021, fluctuates every month, the taxes and levies on fuels in South Africa are modified at the beginning of each fiscal year.
Which nation has the world’s highest fuel prices?
As of July 2022, consumers in the Central African Republic paid the highest fuel prices in Africa. In the nation, the average price per liter of fuel is $2.39. Zimbabwe had the second-highest average retail price on the continent for octane-95 gasoline, at 1.98 U.S. dollars per liter.
