50% fuel levies! Why SA doesn’t enjoy the full effect of low oil prices

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50% fuel levies! Why SA doesn’t enjoy the full effect of low oil prices
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This is why South African motorists are not enjoying the full benefit of lower international fuel prices. IOLMotoring Day55ofLockdown

Johannesburg - Plummeting international oil prices have resulted in some much-needed fuel price decreases for South Africans in recent months, with Covid-19 having given oil markets a Chuck Norris-style roundhouse kick.

But putting next month’s inevitable price hike aside or a moment, the sad reality is that today’s fuel prices reflect international oil prices at the bottom of the curve, and more than three times lower than they were at the top of the last peak in 2018, and yet fuel is not three times cheaper at the pumps.

Currently there are two levies imposed on South African fuel prices, the General Fuel Levy and the Road Accident Fund levy . To give us more perspective into the fuel price situation, the Automobile Association has compiled a price breakdown using coastal 95 Unleaded petrol and inland 93 Unleaded. “South Africa’s fuel price is comprised of many different elements, some of which make fuel in the country more expensive than that in neighbouring countries to which South Africa exports,” the AA said.

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