Let me just start this article with an announcement that I’m breaking up with all my friends that stay far from me. With good reason, this R15.79 per litre of petrol is damn right heavy on the pocket. I’ve glanced into my crystal ball and our friendship sure won’t make it
Did you know that the basic fuel price is actually around R7??? the R15.79 for 95 unleaded petrol that you see hit your wallet everytime you fill up from June 2018 has in it about 34% taxes and the rest is what the supplier (BP, Caltex, Sason, Shell, Total, Engen, etc.) charges to secure a margin and be able to cover distribution and transport costs; this makes up around 20% of the R15.79.
1. Basic Fuel Price (R7.37)
The Basic Fuel Price is arrived at by calculating costs to be incurred for the actual petroleum, shipping, storage, wharfage harbour handling costs and insurance.
2. Wholesale and retail margins, and distribution and transport costs (R3.12)
These costs are made up of retail margins paid to filling/fuel station owners, custom duties, excise duties, inland transport costs and storage costs.
3. Taxes (R5.3)
around 34% of the other costs are made up of taxes by the Government. R3.37 relates to a general tax administered by Treasury and the other R1.93 is a levy for the Road accident fund – used to compensate victims of road accidents; we have been seeing road accident stats sky rocket so best believe this might also be shooting up soon.
This breakdown was proudly brought to you by Genius Level – Let Your Ideas Outlive You.
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