South African motorists face a growing financial strain at the petrol pumps as prices remain stubbornly high. However, analysts suggest that petrol should cost less than R20 per litre, given that fuel taxes and retail margins have increased over the years, Cape {town} Etc reports.
However, analysts suggest that petrol should cost less than R20 per litre, given that fuel taxes and retail margins have increased over the years,Over the past 16 years, fuel rice add-ons increased the total tax per litre from R1.74 in 2008/9 to R6.18 in 2024/25. This includes the Road Accident Fund levy, general fuel levy , and customs and exercise tax. This represents an overall growth of around R255%.
Retail margins are portions allocated to fuel retailers to cover the costs of operating service stations, salaries, rent and the retailer’s profit. If prices were increased alongside inflation, taxes would equal R4.05 per litre with margins around R1.51, equating to R19.60 per litre at the pumps, including the add-ons.
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