Petrol customers throughout South Africa are paying round R5.00 a litre extra for gas in Could 2021, in comparison with a 12 months in the past.
This after important gas value will increase all through the primary few months of the 12 months, which has seen gas attain report highs in April, in accordance with the Car Affiliation of South Africa (AA).
“Though gas costs dipped slightly in Could, the gas value stays excessive, affecting all sectors of the economic system. Filling a 50-litre tank with petrol in South Africa prices simply greater than R250 in Could 2021 than it did in Could 2020,” it mentioned.
In Could 2020, a litre of 93 Octane petrol inland value R12.22, whereas a litre of 95 Octane petrol on the coast value R11.52. These identical gas a 12 months later prices R17.01 a litre and R16.51 a litre respectively.
“This represents a 39% enhance in 93 Octane inland from 2020 costs, and a 43% enhance for 95 Octane on the coast,” the AA mentioned.
“South Africa’s gas value is comprised of many alternative parts, a few of which make gas within the nation dearer than in neighbouring international locations to which South Africa exports.”
The AA mentioned that the gas value in South Africa is comprised of 4 important parts:
- The Normal Gasoline Levy
- Highway Accident Fund Levy
- Fundamental Gasoline Worth (freight and insurance coverage prices, cargo dues, storage and financing)
- Wholesale and retail margins, and distribution and transport prices
As of April 2021, the GFL is R3.93 which represents round 23% of each litre of petrol offered in South Africa. Equally, at its present pricing of R2.18 a litre, the RAF Levy represents round 13% on each litre of gas offered.
Mixed the GFL and RAF levies complete R6.11 (for each inland and coastal costs), a 27 cents a litre – or 4.64% – enhance from 2020.
“Final 12 months, when gas costs skilled report decreases, the mixed levies comprised a lot much less of a proportion of the entire gas value,” the AA mentioned.
“The whole levies mixed in 2021 are anticipated to ship round R126 billion to authorities with round R83 billion coming from the GFL and R43 billion coming from the RAF Levy.”
The tax collected from the GFL goes on to Treasury and can be utilized for any function that the federal government determines.
In South Africa, the gas value is adjusted on the primary Wednesday of each month and is decided by two important components: The rand/US greenback alternate price, and worldwide petroleum costs.
The Fundamental Gasoline Worth (BFP) is calculated primarily based on prices related to transport petroleum merchandise to South Africa from the Mediterranean space, Arab Gulf, and Singapore.
These prices embrace insurance coverage, storage, and wharfage (the associated fee to harbour amenities when off-loading petroleum merchandise into storage). The present BFP is R7.15, considerably greater than in 2020.
Different prices related to the petrol value embrace:
- Transport prices from the harbour to inland areas, which accounts for the distinction in value between coastal and inland costs;
- Customized and excise duties, retail margins paid to gas station homeowners – at present R2.22 on each litre offered;
- Secondary storage prices. These prices at present complete R3.75 for inland petrol and R3.23 for coastal petrol.
Utilizing the present information, filling up a 50-litre tank of gas inland (93 Octane) will value R850.50 and R825.50 on the coast (95 Octane) – R249.50 extra now than a 12 months in the past.
Along with publishing the 2021 gas value breakdown, the AA has highlighted the important thing factors it made to the Parliamentary Portfolio Committee on Mineral Sources and Power in mid-April.
The affiliation was requested to make representations to the committee on find out how to mitigate rising gas prices in South Africa. The AA made the next key suggestions:
- An investigation to be performed on the present pricing mannequin for all gas;
- A Recalculation and audit of current parts throughout the pricing mannequin;
- A Discount of the price of the Highway Accident Fund (RAF) to motorists ;
- Higher allocation and utilisation of funds from the Normal Gasoline Levy (GFL);
- Funding in options to the nation’s present reliance on gas.