Are you aware that less than 40% of the petrol price is made up of actual petrol cost? Most of it goes to pay tax (Fuel Levy), the Road Accident Fund and the various players in storing, wholesaling and retailing petrol.
As of April the makeup of the cost of petrol (as reported by the Automobile Association) is as shown in the table below.
Notes to the table:
- The difference between the two sets of prices is the cost of transport (34 cents per litre) to get fuel from the coast to inland.
- The Fuel Levy is a general tax and is part of Government taxes. It will contribute R77.5 billion to taxes in 2018/2019.
- The RAF is to compensate those injured in road accidents. RAF will raise R41.2 billion in 2018/2019.
- Storage, margin and distribution is mainly the fee paid to wholesalers and service stations.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)