We breakdown how the cost of petrol is determined in an effort to educate our customers about how their money is spent and allocated.
Government regulates wholesale margins and controls the retail price of petrol. This means the price is influenced by international petroleum markets and the Rand/ US Dollar exchange rate.
Government also imposes levies on every litre of petrol. The General Fuel Levy and the Road Accident Fund (RAF) Levy are charged on every litre that is sold. Consumers currently pay R5.59 towards indirect taxes on every litre of petrol bought and R5.19 on every litre of diesel.
The petrol price is comprised of four main elements:
The General Fuel Levy - The money collected through this tax is administered by the National Treasury and is treated as a general tax. Vehicle owners contribute R3.61 (petrol) and R3.22 (diesel) for the General Fuel Levy.
The RAF Levy - The income is a charge levied on petrol throughout the country and the quantum of the RAF Fuel Levy per litre is determined by the National Treasury on an annual basis. It is paid out to victims of road accidents. Customers pay R1.98 for the RAF levy.
The Basic Fuel Price - It is calculated based on costs of importing petroleum products to South Africa from other countries. It also includes freight and insurance costs, cargo dues and storage fees.
Wholesale and retail margins, and distribution and transport costs - It is determined based on the actual costs incurred by the service station operator in selling petrol. This includes the cents per litre gross marketing margin set by the Department of Energy.
TotalEnergies shares the petrol increase or decrease notifications with its customers every month ahead of any change in price. This is our way of keeping our customers in the loop. Click here to get a notification ahead of petrol price changes.