South Africa | March 2026 | 95 Unleaded

What Makes Up the
Price of Petrol?

Every litre of petrol you buy is shaped by international oil markets, shipping costs, exchange rates, government levies, and industry margins. Here's how it all adds up.

R 19.47 / litre

Coastal pump price  |  R20.30 inland (Gauteng)

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The Big Picture

Your R19.47 is split between international import costs, government taxes, and industry margins. Here's the breakdown.

R19.47
per litre
  • Basic Fuel Price (BFP)
    The international "landed cost" of importing fuel
    50.9%
    R9.90
  • General Fuel Levy
    Tax collected by SARS for National Treasury
    20.6%
    R4.01
  • RAF Levy
    Funds the Road Accident Fund
    11.2%
    R2.18
  • Retail Margin
    What the petrol station keeps
    14.4%
    R2.81
  • Wholesale & Other
    Oil company margins, customs, DSML, carbon levy
    2.9%
    R0.57

The Journey of a Litre

From an international refinery to your fuel tank — each step adds cost.

1

International Refinery

Refined petroleum products are priced at international hubs in the Mediterranean, Arab Gulf, and Singapore. Prices are quoted in USD per barrel.

FOB Price
2

Sea Freight

Tankers ship refined fuel to SA ports. Freight rates are set monthly using the Average Freight Rate Assessment (AFRA). Insurance (0.15%) and ocean loss (0.3%) are added.

Freight + Insurance
3

SA Port Arrival

At port, wharfage (harbour dues) and demurrage (max 3 days delay charge) are added. Cargo is offloaded into coastal storage terminals.

Wharfage + Storage
All converted: USD → ZAR at current exchange rate
4

Government Levies Added

National Treasury adds the Fuel Levy, RAF Levy, Carbon Tax, Customs Duty, DSML, and Slate Levy on top of the landed cost.

~R6.19 / litre in taxes
5

Industry Margins

Wholesale margins (oil companies) and retail margins (service stations) are added. These are regulated by the DMRE and adjusted periodically.

~R3.38 / litre margins
6

At the Pump

The final regulated price is gazetted by the DMRE monthly. No station may charge more. Inland areas pay ~83c more for pipeline/road transport.

R19.47 coastal

Inside the Basic Fuel Price

The BFP (~51% of the price) is a "deemed import parity price" — it's calculated as if 100% of SA's fuel is imported, even though some is refined locally.

FOB Price

The international benchmark price of refined petroleum at Mediterranean, Arab Gulf, and Singapore refining hubs. Quoted in USD — the biggest single factor.

Freight

Cost of shipping fuel by sea tanker to SA. Updated monthly via the Average Freight Rate Assessment (AFRA). Affected by vessel supply, fuel costs, and route risks.

🛡

Insurance

Set at 0.15% of FOB + freight. Covers letters of credit, surveyors' fees, agent fees, and lab testing costs.

🌊

Ocean Loss

A 0.3% allowance for uninsurable losses during transit — evaporation, minor spillage, and measurement discrepancies.

Demurrage

Charges for ship delays at loading/discharge ports. Max 3 days. Rates set by the World Scale Association.

🏗

Wharfage

Harbour dues paid to Transnet for using SA port facilities to offload cargo.

📦

Coastal Storage

Cost of storing fuel at coastal terminals after arrival — tank rental, pumping, and pipeline charges.

💰

Stock Financing

Cost of holding inventory: landed cost × 25 days × (prime rate − 2%). Higher interest rates = higher costs.

💱

Currency Conversion

All USD costs are converted to ZAR using the current Rand/Dollar exchange rate. A weaker Rand means a higher BFP — even if oil prices stay flat.

Government Levies & Taxes

About 32% of every litre goes to government through various levies. Here's what you're paying and where it goes.

General Fuel Levy
National Revenue Fund
R4.01
RAF Levy
Road Accident Fund
R2.18
Carbon Levy
~R0.11
Customs & Excise
~R0.04
DSML
~R0.10
Slate Levy
R0.00
April 2026 Update: From 1 April, the General Fuel Levy increases by 9c/l to R4.10, the RAF Levy by 7c/l to R2.25, and the Carbon Levy by 5c/l. That's an additional 21 cents per litre in taxes.

What Drives Fuel Prices Up or Down?

Two forces shape the price: international markets (which SA cannot control) and domestic policy decisions.

🌎 International Factors Affects BFP

⛽ Global Oil Prices

Driven by OPEC+ production decisions, geopolitical conflicts, and global economic demand. When Brent crude rises, SA pays more.

💱 Rand/Dollar Exchange Rate

A weaker Rand makes dollar-priced oil more expensive in Rands. Even if oil prices fall, a weakening Rand can push the BFP up.

⛵ Shipping Costs

Vessel availability, fuel costs for ships, and geopolitical disruptions to shipping routes all affect freight rates.

🏭 Refinery Margins

The spread between crude oil and refined product prices. Refinery outages or high demand can widen this gap.

🇿🇦 Domestic Factors Affects Levies & Margins

📜 Government Fiscal Policy

National Budget decisions to raise or hold fuel levies. These typically increase annually, adding to the pump price.

📈 Interest Rates

Higher interest rates increase the stock financing component of the BFP — the cost of holding fuel inventory.

🚚 Transport Costs

Inland areas like Gauteng pay ~83c/l more because fuel must be pumped via pipeline or trucked from coastal depots.

⚖ Slate Mechanism

When the actual cost differs from the regulated price, the difference accumulates. The Slate Levy recovers or returns this balance.

Who Sets What?

Multiple government bodies and industry players each control different parts of the price.

🏛 DMRE
Department of Mineral Resources & Energy — sets and announces the monthly fuel price, regulates margins, and oversees the pricing formula.
📊 CEF
Central Energy Fund — calculates the Basic Fuel Price daily on behalf of the DMRE using international market data.
💰 National Treasury & SARS
Sets the General Fuel Levy and Carbon Tax. SARS collects these taxes at the refinery/import point.
🚗 Road Accident Fund
Receives the RAF Levy from every litre sold. Compensates victims of motor vehicle accidents on SA roads.
🚢 Transnet
Operates ports and the fuel pipeline network. Their tariffs affect wharfage, coastal storage, and inland transport costs.
⛽ Oil Companies
Operate within regulated wholesale margins. Handle bulk storage, distribution, and marketing of fuel products.
⛽ Service Stations
Operate within the regulated retail margin (~R2.81/l). Cannot charge above the gazetted maximum price for petrol.
Did You Know? Petrol has a regulated maximum retail price — no station may charge more. But diesel only has a regulated wholesale price — retailers can set their own diesel price (though competition keeps it close). Illuminating paraffin is regulated at both wholesale and retail levels to protect lower-income households.

Live Fuel Price Estimator

This estimator automatically fetches today's Brent crude oil price and USD/ZAR exchange rate to calculate what the pump price should be right now, compared to the current gazetted price.

Brent Crude
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USD/ZAR Rate
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Last Updated

Estimator Settings

How it works: We fetch the latest Brent crude price and ZAR exchange rate from free financial APIs. The BFP is estimated using a model that applies a ~12% crack spread, adds freight/insurance (~$3.50/bbl), converts to c/l, then adds coastal storage and stock financing. This is an approximation — the actual CEF daily BFP includes additional nuances.

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