What’s Happening to SA’s Petrol Prices, and How Do they Compare Internationally?
South Africans are paying more for a litre of petrol than ever before. In October 2018, the price of fuel reached record highs of R17.08 and R16.49 in inland and coastal areas, respectively. That’s a jump of around 80 percent compared to a decade ago.
Along with rising crude oil prices and the rand’s weakness against the dollar, fuel taxes levied by government have soared by more than 165 percent over ten years.
More fuel price increases ahead
Economists are warning of yet more turbulence in the months ahead. The US sanctions against Iran, and the international fall-out from the killing of journalist, Jamal Khassoggi, by the Saudi Arabian government, are expected to drive the price of crude up even further. On the global stage, motorists everywhere have to spend more on filling up their vehicles. The average price of petrol around the world has risen by six percent in the past three months. It’s currently pegged at R17.02 per litre.
Soaring fuel prices: how does South Africa compare?
We now know we are paying a little more than the global average for a litre of petrol, but how does the South African fuel price compare with the rest of the world? South Africa is currently ranked 83rd on the global petrol price rankings, with SADC countries Mozambique (R16.72 per litre) and Kenya (16.88 per litre) ranked immediately behind us. What is revealing is that most of our immediate neighbours – Lesotho (R11.20), Botswana (R11.35), Swaziland (12.80) and Namibia (12.95) – pay significantly less for a litre of petrol. Zimbabwe (21.39) and Mozambique are the only exceptions.
Hong Kong has the highest petrol price in the world
The most expensive and highest ranked country for fuel is Hong Kong, where you’ll pay R31.72 a litre. The largest component of the Hong Kong fuel price is a government tax levied to discourage motorists from using their own vehicles. Norway (R29.24), Barbados (R28.23) and Iceland (27.94), along with a host of other European countries, dominate the most expensive fuel price list.
Pay just 15 cents a litre in Venezuela
On the other side of the scale, Venezuela is by far the cheapest country for fuel. A litre of gasoline is just 15 cents… that’s around R5 for a tank. The country’s rich oil reserves have kept the petrol price rock bottom, despite an imploding local economy. Sudan (R1.89), Iran (R4.22), Kuwait (R5.09) and Algeria (R5.09) are the next best countries in terms of low fuel costs.
SA’s petrol price as a percentage of average daily wage
Although we are situated mid-way on the price-per-litre rankings table, South Africa’s low average income is a determining factor when it comes to affordability. The average daily wage nation-wide is a meagre R237.13. That means consumers have to spend 6.43 percent of that wage in order to afford a litre of petrol. If one looks at the price of petrol as a percentage of income, South Africa is one of the worst performers in the world.
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